During the early 20th century, economists who held that the Ricardian equivalence theorem was theoretically true could support either sound or functional finance.
Answer the following statement true (T) or false (F)
True
Holding the Ricardian equivalence theorem to be theoretically true does not entail accepting that deficits do not affect output in the short run. Therefore, one was still free to support functional finance, which says that the government should make the decision whether to run a deficit based on its effect on the economy. In addition, sound finance is a moral position that was based primarily on political grounds. Therefore, supporting that view doesn't depend on whether one holds the Ricardian equivalence theory to be theoretically true or not.
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Answer the next question based on the following information for Manfred's Shoe Shine Parlor.Units of LaborTotal ProductMarginal ProductTotal Revenue00 11414$422 10 330 90435 539 1176 1267442132Assume Manfred hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. How many units of output are produced when 2 workers are employed?
A. 10. B. 16. C. 24. D. 4.
The concept of holding reserves, such as gold, that are less than the value of the total deposits
A) is known as fractional reserve banking. B) has been illegal since the passage of the Financial Services Modernization Act of 1999. C) is known as non-credit banking. D) None of the above are correct.
Give an example that shows price inelasticity of supply. Avoid using examples from the text.
What will be an ideal response?
The estimated fiscal burden of illegal immigrant households in the United States is:
A. $800 million per year. B. $20 billion per year. C. $50 billion per year. D. $4.5 billion per year.