Ricardian equivalence suggests that government budget deficits generated by decreases in current taxes
A) increase the current account surplus.
B) decrease the current account surplus.
C) have no effect on the current account surplus.
D) have unpredictable effects on the current account surplus.
C
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In practice, price discrimination is never perfect. Why?
What will be an ideal response?
If the price of beef jerky rises, the substitution effect due to the price change will cause
A) an increase in the demand for hot sauce, a complement for beef jerky. B) a decrease in the quantity of beef jerky demanded. C) an increase in the quantity of beef jerky demanded. D) an increase in the demand for beef jerky.
If the marginal revenue product of the fifth worker is $15, the price of the last unit of output produced is $5, and the firm sells as a price searcher, then the marginal product of the fifth worker is
a. 3 units of output b. 45 units of output c. fewer than 3 units of output d. greater than 3 units of output e. greater than 75 units of output
For this question, assume that expectations of P and A are correct. Based on price setting behavior, the real wage will be equal to which of the following?
A) A/(1 + m) B) AP/(1 + m) C) APF(u,z) D) P(1 + m) E) none of the above