According to Ricardian equivalence, the key consequence of an increase in the budget deficit that arises from a tax cut is ________
A) a decrease in private investment
B) an increase in inflation
C) an increase in the public's holding of government bonds
D) an increase in the supply of money
C
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Land is an example of a renewable resource
Indicate whether the statement is true or false
Refer to Scenario 21-1. Based on the information above, what is the level of public saving?
A) $0 B) $1 trillion C) $2 trillion D) negative $1 trillion (a deficit of $1 trillion)
Biscuits are an inferior good for Aster, then if their price falls, she
a. will definitely buy more biscuits b. will definitely buy fewer biscuits c. may buy more biscuits d. will buy fewer biscuits if the substitution effect is larger than the income effect e. will buy more biscuits if the substitution effect is larger than the income effect
From the standpoint of the economy as a whole, the role of insurance is to greatly reduce or eliminate the risks inherent in life
a. True b. False Indicate whether the statement is true or false