The Ricardian equivalence theorem implies that
A) government debt policy must be handled correctly for the economy to prosper.
B) the amounts of government spending are neutral.
C) an increase in government spending has no effect on the economy, as long as there is an equal change in taxes.
D) the timing of taxes collected by the government is neutral.
D
Economics
You might also like to view...
According to this Application, three economists that studied data from the countries in the OECD found the value of the multiplier to be
A) 1.3. B) 2.3. C) 3.3. D) 4.3.
Economics
The ultimate source of liquidity in a modern industrial economy is the
A) government Treasury. B) central bank. C) capital market. D) liquidity market.
Economics