Which of the following are possible justifications for government redistribution of income?
a. The desire for a more unequal distribution of income.
b. Charity is a collective consumption good and thus might be underprovided.
c. Redistribution acts as insurance against further coercion.
d. Private redistribution of income merely shuffles money around the rich and upper-middle class.
Question 2
If the government wants to borrow money to build new highways; then the
A) interest rate will be higher.
B) quantity of funds available in the market will increase.
C) private investment will decrease.
D) All of the above.
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