Ricardian equivalence predicts:
A. that if governments cut taxes but not spending, people will not change their behavior.
B. if people perceive current tax cuts to mean higher tax payments in the future, the cuts will have little expansionary effect.
C. the consumers need to feel as though they will not have to pay in the future for current spending to make current tax cuts effective expansionary policy.
D. All of these are true.
D. All of these are true.
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In the loanable funds market, if the real interest rate is higher than the equilibrium real interest rate,
A) the demand for loanable funds curve shifts rightward to restore the equilibrium. B) there is a surplus of investment. C) there is a shortage of loanable funds. D) the demand for loanable funds curve shifts leftward to restore the equilibrium. E) there is a surplus of loanable funds.
According to the second monetarist proposition, which of the following factors do not determine the level of real output in the long run?
a. The stock of capital goods b. The size of the labor force c. The quality of the labor force d. The state of technology e. The quantity of money
If a consumer weakly prefers pizza to hot dogs, and weakly prefers hot dogs to chicken, then he ________ pizza ________ chicken
A) likes; less than B) likes; at least as much as C) dislikes; more than D) dislikes; and is indifferent about
If the price of a firm's product is $10 and the firm faces a constant marginal cost of $4 that is equal to its (constant) average total cost, the profit from selling a unit of the firm's product from its inventory is equal to ________.
A) $6 B) $10 C) $4 D) $14