The theory that government borrowing may function like an increase in taxes, that is, reducing current consumption and business expenditures, is known as
A) the marginal propensity to consume.
B) the Ricardian equivalence theorem.
C) planned tax policy.
D) Congressional Tax policy.
B)
Economics
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The phenomenon which occurs when markets do not produce the most efficient outcome on their own is known as
A) market failure. B) imperfect information. C) economic certainty. D) public goods.
Economics
What was the purpose of the stress test administered by the Treasury in 2009?
A) Evaluate potential losses of Fannie Mae and Freddie Mac. B) Assess the viability of AIG. C) Gauge how well the largest financial firms would fare if the recession deepened. D) Evaluate the solvency of the major investment banks.
Economics