Ricardian Equivalence theory assumes that ________
A) an anticipated increase in the income of future generations will reduce the amount that is saved today on their behalf
B) government spending remains constant
C) many people are subject to borrowing constraints
D) tax cuts have a positive impact on aggregate supply
A
Economics
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In a small open economy, goods market equilibrium occurs when desired saving minus desired investment equals net exports. Explain
What will be an ideal response?
Economics
The most fundamental concepts underlying the discipline of economics are:
a. scarcity and choice. b. supply and demand. c. money, stocks, and bonds. d. inflation and unemployment.
Economics