The Ricardian equivalence theorem states that
A. the effects of an increase in government spending are equivalent to the effects of an increase in the money supply.
B. an increase in government spending financed by higher taxes has no effect on aggregate demand.
C. government spending financed by taxes is equivalent to government spending financed by borrowing.
D. spending on national defense is a direct expenditure offset.
Answer: C
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To induce an increase in the quantity demanded of its product, a monopolist must reduce the
A) quality of its product and thereby generate a downward shift its ATC curve. B) price of its product and thereby generate a rightward shift in its demand curve. C) price of its product and thereby generate a rightward movement along its demand curve. D) quality of its product and thereby generate a downward movement along its ATC curve.
Either a price floor or a price ceiling will result in a smaller quantity exchanged than if the price was at its equilibrium level
a. True b. False Indicate whether the statement is true or false
Invention alone does not explain why free market societies have experienced such rapid rates of economic growth
a. True b. False Indicate whether the statement is true or false
If a large number of people are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is lower than the true unemployment rate.
Answer the following statement true (T) or false (F)