Ricardian equivalence is the proposition that
A) government expenditure should only be financed by taxes.
B) it does not matter whether government expenditure is financed by creating new money or issuing debt.
C) government expenditure should only be financed by issuing new debt.
D) it does not matter whether government expenditure is financed by taxes or debt.
D
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Which of the following forms the largest share of gross domestic product in the United States, when measured using the expenditure method?
A) Investment expenditure B) Government expenditure C) Foreign expenditure on domestic goods D) Expenditure on consumption
Speculative attacks against a currency are caused by fears of:
A. monetary policy tightening. B. exchange rate revaluations. C. exchange rate devaluations. D. balance-of-payments surpluses.