Ricardian view on debt is that the form of government finance is irrelevant.
A. True
B. False
C. Uncertain
A. True
You might also like to view...
Consider a closed economy without a government and without international trade. What will be TRUE when this economy is in equilibrium?
A) Planned real consumption spending equals real GDP. B) Total planned real investment spending will exceed total planned real expenditures. C) Planned real consumption spending plus planned real investment spending equals real GDP. D) Planned real investment spending will exceed real planned saving.
If the economy slips into recession, the Fed ________ the federal funds rate, which ________ the short-term interest rate, and ________ the quantity of money
A) lowers; lowers; decreases B) raises; lowers; increases C) raises; lowers; decreases D) lowers; lowers; increases E) lowers; raises; increases
Transfer payments are
a. included in GDP because they represent income to individuals. b. included in GDP because they eventually will be spent on consumption. c. not included in GDP because they are not payments for currently produced goods or services. d. not included in GDP because taxes will have to be raised to pay for them.
Social Security began as a "pay-as-you-go" system, meaning that payments to current retirees were paid
A) from taxes collected from current workers. B) from taxes collected from retired workers. C) as long as the government had funds available. D) as the government collected revenues from tariffs and excise taxes in the years Social Security payments were made.