According to the New Classical View,if People Appropriately Realize That

question 28

Multiple Choice

According to the new classical view,if people appropriately realize that an increase in government debt implies higher future taxes,they will

• A)save less since the substitution of debt for taxes makes them wealthier.
• B)increase their consumption since the substitution of debt for taxes makes them wealthier.
• C)save more now to meet the future tax liability implied by the increase in debt.
• D)alter neither their saving nor their consumption rate.

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Definitions:

Fraud

Intentional deception made for personal gain or to damage another individual.

Duress

A broader term referring to the use of force, threats, or undue pressure by one party to compel another to act in a manner they would not ordinarily do.

Average Strength

Typically refers to the median level of force or power of an entity or substance, measured against a standard or amongst a range.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.