Suppose the government cuts taxes by $300 million dollars this year and must pay off its debt next year by increasing taxes by $300 million
According to Ricardian equivalence, consumption spending will ________ this year and ________ next year, all else equal. A) increase by $300 million; decrease by $300 million
B) increase by $150 million; decrease by $150 million
C) increase by $300 million; not change
D) not change; not change
D
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Since about 1980,
a. production worker pay in the U.S. has grown faster than CEO pay b. the typical U.S. CEO has come to earn more than the typical NBA basketball player c. CEO pay in Europe has grown much faster than CEO pay in the U.S. d. CEO pay in the U.S. has grown to a very large multiple of production worker pay e. the ratio of CEO pay to production worker pay in the U.S. has not changed much, although both groups receive much high pay now
At the utility maximizing level, the ratio of the marginal utility of pizzas to that of sandwiches is 3:4 . If the price of a pizza is $3, then the price of a sandwich is _____
a. $6 b. $4 c. $9 d. $8
In a market economy, the allocation of the quantity supplied of any good among demanders is determined by
a. the needs of the individuals. b. the sellers. c. the market price. d. government regulations. e. a random process.
The long run is defined as a time period during which full adjustment can be made to any change in the economic environment. Thus in the long run, all factors of production are variable. Long-run curves are sometimes called planning curves, and the long run is sometimes called the
A. non-adjustment period. B. planning horizon. C. foreseeable future. D. minimum efficient time period.