Ricardian equivalence can be said to hold if:
a. taxation has greater effect on private spending than government borrowing.
b. taxation has a lesser effect on private spending than government borrowing.
c. government borrowing does not affect private consumption while taxation has a negative impact on private consumption.
d. government spending activities financed by taxation and those financed by borrowing have the same effect on private spending.
e. government spending activities financed by taxation and those financed by borrowing have no effect on private spending.
d
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It is possible to increase our consumption of a clean environment without giving up anything
a. True b. False Indicate whether the statement is true or false
Answer the following statement true (T) or false (F)
1) The government's ability to force people to do things can increase economic efficiency. 2) Government's ability to enforce laws and contracts increases private-sector economic risks. 3) The invisible hand guides government's economic activity just as it does with private economic activity. 4) Because of the force of law and bureaucratic structure, government accountability is less of a problem than in the private sector.