The Ricardo-Barro effect of a government budget deficit refers to
A) a change in private savings supply.
B) a large crowding out effect from a government budget deficit.
C) a large crowding out effect from a government budget surplus.
D) the international impact of government deficits.
A
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The second largest component of the federal government revenues is receipts from ________
A) corporate income tax B) excise tax C) social insurance tax D) value-added tax
Which of the following is true of welfare states?
A) Resources are not equally distributed in a welfare state. B) Resources are efficiently allocated in a welfare state. C) A welfare state entails a huge cost on the society. D) A welfare state usually has a regressive tax system.
According to the maximin criterion, income should be transferred from the rich to the poor as long as it
a. raises the well-being of the least fortunate. b. does not alter incentives to work and save. c. promotes an equal distribution of income. d. does not lower the welfare of the elderly.
If the nominal wage rises by 6 percent, and the price level falls by 2 percent, the real wage will:
A. be unaffected. B. rise by 4 percent. C. fall by 4 percent. D. rise by 8 percent.