Which condition would generate a violation of the Ricardian Equivalence?
A) downward sloping labor supply curve
B) underdeveloped credit markets
C) inflationary monetary policy
D) deflationary monetary policy
B
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If the international value of the dollar rises, the
A. aggregate demand curve will shift inward. B. aggregate supply curve will shift outward. C. U.S. price level will fall. D. All of these responses are correct.
Answer the next question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (Dt) for money and columns (1) and (3) show the asset demand (Da) for money.(1)Interest Rate(2)Dt(3)Da12%$100$010100208100406100604100802100100If the money supply is $160, the equilibrium interest rate will be
A. 8%. B. 4%. C. 10%. D. 6%.
Quantity supplied means
A) the amount of a good consumers plan to purchase. B) the amount of a good suppliers plan to sell at a given price. C) the only level of output that producers can produce. D) the same thing as "supply."
Under a fixed exchange rate system, central banks ________ meet the demand for their domestic currency and ________ meet the demand for foreign currencies
A) can always; can always B) can always; are limited in their ability to C) are limited in their ability to; are limited in their ability to D) are limited in their ability to; can never