Multiple Choice
If the Ricardian equivalence proposition is correct, then:
A) deficits stimulate the economy in the short run.
B) deficits stimulate the economy in the medium run.
C) deficits have no effects on economic activity.
D) deficits harm future generations.
E) deficits reduce investment spending.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: The official measure of the deficit is
Q14: What is a haircut?<br>A) The private sector
Q15: Which of the following is common to
Q16: The primary deficit is represented by which
Q17: In the medium run, a fiscal contraction
Q19: A higher deficit in the current year
Q20: To reduce distortions in the economy, it
Q21: If the Ricardian equivalence proposition is correct,
Q22: If the government runs a primary deficit
Q23: The correct measure of the deficit is