Securities exchanges pay no attention to hedge funds

a. True
b. False

B

Economics

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When different consumers pay different amounts of taxes, Ricardian equivalence may fail because

A) alternative ways of collecting the same tax revenue can affect the distribution of income. B) consumers can become jealous of one another. C) such differences in taxes create credit market imperfections. D) higher taxes on more talented people may be politically popular.

Economics

Distorting taxes can invalidate Ricardian equivalence because

A) they confuse consumers about the need for government to repay its debt. B) alternative ways of collecting the same tax revenue produce different amounts of lost welfare. C) they are inferior to lump-sum taxes. D) they are more popular, politically, than lump-sum taxes.

Economics