New Classical Economists Believe That an Increase in Deficit Financing

question 2

Multiple Choice

New classical economists believe that an increase in deficit financing by the government will

• A) reduce government spending.
• B) increase consumption.
• C) reduce future taxes.
• D) increase savings.

Identify the principles guiding ethical decisions in egoism and how they contrast with altruism.

Understand the core principles of Stoicism.

Identify key figures and their contributions to Hedonism and Stoicism.

Recognize Ayn Rand's philosophy and her support for a particular theory.

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Definitions:

Price Stability

A situation in an economy where prices in general do not change significantly over time, minimizing uncertainty and conducive to economic growth.

Oligopolies

Market structures characterized by a small number of firms that have significant market power, which can influence prices and output levels.

Cartels

Formal agreements among competing firms to control prices, production, and distribution of goods, often to restrict competition and increase profits illegally.

Collusive Arrangements

Agreements between firms to control prices or exclude entry of a new competitor in the market, often in violation of antitrust laws.