According to the Ricardian view of government deficits,
A. any future burden of tax financing should be ignored.
B. government deficits reduce interest rates.
C. taxpayers are less capable of saving when debt finance is used rather than tax finance.
D. the private sector supply of loanable funds will increase in the face of government deficits.
D. the private sector supply of loanable funds will increase in the face of government deficits.
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Given the following information about Metropolis Bank:
Bank Deposits $50,000 Loans 17,500 Required Reserves 30,000 Excess Reserves 2,500 The required reserve ratio must be A) 75 percent. B) 60 percent. C) 30 percent. D) 15 percent.
In a country without foreign trade and income taxes, if the government decreases autonomous spending and autonomous taxes by 50 then total expenditures and output will
A) increase by 50 if the MPC is 1. B) decrease by 50 for any value of the MPS greater than zero. C) decrease by 100 if the MPS is 0.5. D) increase by 200 if the MPS is 0.25.
Under what conditions could minimum wage laws lead to increases in unemployment?
The order of payment of corporate earnings is bondholders, preferred stockholders, convertible stockholders, and finally common stockholders
Indicate whether the statement is true or false