The Ricardian equivalence theorem is correct if two assumptions are true. These assumptions are that people have:
A. access to savings instruments but cannot recognize the link between deficits and future taxes.
B. no access to savings instruments and cannot recognize the link between deficits and taxes.
C. no access to savings instruments and recognize the link between deficits and future taxes.
D. access to savings instruments and recognize the link between deficits and future taxes.
Answer: D
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Which of the following would shift the supply curve for coffee to the right?
a. An innovation in agricultural techniques that allows growers to produce coffee less expensively. b. A late frost in Brazil that destroys 75% of its coffee bean crop. c. An increase in the wages paid to coffee bean pickers. d. A rise in the popularity of espresso, cappuccino, and other exotic coffee drinks.
Answer the next question based on the information given in the following table.EmploymentTotal ProductProduct Price00$3112322233303436354036423If the firm is hiring workers under purely competitive conditions at a wage rate of $22, it will employ
A. 1 worker. B. 2 workers. C. 3 workers. D. 4 workers.
List the three most common forms of trade barriers
What will be an ideal response?
Under perfectly competitive conditions, marginal revenue is
a. greater than average revenue. b. equal to average revenue. c. less than average revenue. d. equal to the average variable cost.