Which of the following correctly explain Ricardian equivalence?
a. Government spending that is financed by borrowing has a smaller effect on the economy than government spending financed by raising taxes.
b. Consumers do not base current spending on future expected tax liabilities.
c. Government borrowing can function like increased current taxes, reducing current household and business expenditures.
d. The government should balance its budget by equating revenue and expenditure in every fiscal year.
e. Government spending does not crowd out private investment.
c
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When a credit card company offers different services with its card, like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card, the credit card company is trying to
A) shift the demand curve for competing firms to the right. B) create a perfectly competitive market in which to sell its credit card. C) create a barrier to entry for competing firms. D) convince customers that its card has greater value than those offered by rival firms.
Unemployment due to factors such as weather or fluctuations in demand for certain goods and services during different times of the year is called ________ unemployment
A) frictional B) structural C) cyclical D) seasonal