According to the Ricardian equivalence proposition, a government budget deficit created by a temporary tax cut
A) does not affect desired national saving.
B) does not affect expected future taxes.
C) reduces desired investment spending.
D) increases the real interest rate.
A
You might also like to view...
Throughout U.S. history, the debt-GDP ratio has jumped sharply higher during
A) cyclical expansions. B) stock market crashes. C) wars. D) Presidential election years.
For a typical product, an increase in consumer income will cause the market demand for the product to
a. decrease, which is a shift to the left of the demand curve. b. decrease, which is a shift to the right of the demand curve. c. increase, which is a shift to the left of the demand curve. d. increase, which is a shift to the right of the demand curve.
For most less-developed countries, the proven technologies of the high-income countries are readily available. Why hasn't this always led to economic growth for these low-income countries?
Which of the following functions does the Fed perform?
A. Printing money B. Holding bank reserves C. Providing loans to other countries D. All of the above are functions the Fed performs.