Explain the proposition known as Ricardian equivalence
What will be an ideal response?
The theory of Ricardian equivalence is based on the premise that it does not matter whether government expenditures are financed by taxes or by issuing debt.
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The size of a corporation, as measured by stockholders' equity, depends primarily upon
A) current net revenue. B) people's expectations of future earnings. C) the amount of capital invested in the corporation. D) total sales (in dollar terms).
The aim of supply-side economics is to: a. increase government spending to stimulate aggregate supply
b. stimulate exports to increase the balance of payments. c. decrease wages to make production cheaper. d. lower taxes to increase the supply of resources. e. reduce both the inflation and unemployment problems through increases in taxes.