Ricardian equivalence implies
A) that when the government borrows more, the market real interest rate goes up.
B) that if the government saves less, then the nation saves less.
C) that when taxes are cut people consume more.
D) that consumers will save their tax cuts to pay their future taxes.
D
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What will be the effects of an increase in the money supply on the interest rate?
What will be an ideal response?
A change in demand cannot be caused by a change in:
a. tastes. b. population. c. the prices of other goods. d. expectations of future prices. e. the price of the good itself.
New loans create money directly, but they also create excess reserves in other banks, which leads to still further increases in both loans and the supply of money
a. True b. False Indicate whether the statement is true or false
If the Consumer Price Index was 102.2 in 2007 and 104.9 in 2008, we can conclude that
a. the prices of all consumer goods were higher in 2008 than in 2007 b. the prices of all consumer goods were lower in 2008 than in 2007 c. the price level fell from 2007 to 2008 d. the price level rose from 2007 to 2008 e. the base year was 2001