The Ricardian equivalence theorem states that
A) spending on national defense is a direct expenditure offset.
B) an increase in government spending by the federal government leads to offsetting reductions in state government spending.
C) government spending financed by taxes is equivalent to government spending financed by borrowing.
D) an increase in government spending financed by higher taxes has no effect on aggregate demand.
C
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When the level of the stock market is high, investment spending tends to be high, ceteris paribus
Indicate whether the statement is true or false
"An extra dollar of income gives more additional satisfaction to a poor person than to a rich person." This is an important assumption of which political philosophy?
a. utilitarianism b. liberalism c. libertarianism d. republicanism