All else equal, Ricardian equivalence predicts:
A) a low rate of savings in response to a tax cut.
B) a low multiplier for tax cuts.
C) a low response rate for incentives provided to local businesses.
D) a low willingness to change policy in response to economic downturns.
Correct Answer:
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Q87: The budget deficit may increase when:
A) tax
Q88: A budget deficit is the:
A) amount of
Q89: A budget surplus is the:
A) amount of
Q90: During a recession, government deficits grow because:
A)
Q91: Suppose the country of Piedmont borrows money
Q93: All else equal, Ricardian equivalence predicts that
Q94: Ricardian equivalence will fail to hold if:
A)
Q95: The government budget includes money:
A) coming in
Q96: Economists express the budget deficit:
A) as a
Q97: Ricardian equivalence predicts that:
A) people will not
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