Ricardian equivalence argues that when the government cuts taxes and raises its deficit,
A) consumers anticipate that they will face lower taxes later to pay for the resulting government debt.
B) consumers anticipate that they will higher services from the government.
C) consumers anticipate that they will face higher taxes later to pay for the resulting government debt.
D) consumers anticipate it will affect their future taxes, in general in the direction of lowering future taxes.
E) consumers anticipate that the low tax rates will continue.
C
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A corporation can elect to divide corporate profits into either dividends or retained earnings.
Answer the following statement true (T) or false (F)
Why does the AFC curve continue to decline even as the AVC and ATC curves are rising?
a. Fixed costs are not used to calculate average total costs.
b. Fixed costs are being spread over larger volumes of output.
c. Variable costs such as rent tend to decrease over time.
d. Variable costs increase whether output rises or falls.
The largest efficiency gains from deregulation have occurred in the:
A. natural gas and cable television industries. B. cable television and railroad industries. C. communications and stock-brokering industries. D. airlines, trucking, and railroad industries.
The labor force equals the number of people
A) in the working-age population. B) employed. C) unemployed. D) employed plus unemployed.