Ricardian equivalence suggests that government budget deficits generated by decreases in current taxes
A) increase the current account surplus.
B) decrease the current account surplus.
C) have no effect on the current account surplus.
D) have unpredictable effects on the current account surplus.
C
Economics
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Suppose a bank will pay you a 10% interest rate on your deposits for one period. In this case you must sacrifice $10 of current consumption to finance:
a. $9 of future consumption b. $10 of future consumption c. $11 of future consumption d. $1 of future consumption e. none of the above
Economics
Graphically, the area that represents the difference between the maximum price consumers were willing to pay for a good and the market price is called
a. consumer surplus. b. producer surplus. c. marginal cost. d. triangular arbitrage.
Economics