Multiple Choice
The proposition that financing debt by issuing bonds merely postpones taxation and is therefore in many instances equivalent to current taxation is known as the
A) balanced budget theorem
B) rational expectations proposition
C) Barro-Ricardo equivalence proposition
D) Reagan theory of taxation
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Liquidity constraints explain<br>A)why consumers may spend less
Q8: According to the permanent-income theory of consumption<br>A)permanent
Q9: The debate about different consumption theories can
Q10: The Barro-Ricardo equivalence proposition<br>A)states that debt-financing merely
Q11: The Barro-Ricardo equivalence proposition implies that tax
Q13: Empirical studies of aggregate consumption have shown
Q14: Consumption is an important element of aggregate
Q15: If the interest rate increases,<br>A)consumption of non-durable
Q16: According to the permanent-income theory, which of
Q17: The Barro-Ricardo equivalence proposition relies on<br>A)the presence