Multiple Choice
The argument that households and firms view an increase in government spending as a sign that taxes will rise in the future and decrease current spending in anticipation of higher future taxes is called:
A) debt overhang.
B) the natural rate hypothesis.
C) supply-side economics.
D) Ricardian equivalence.
Correct Answer:
Verified
Correct Answer:
Verified
Q20: Keynesian economics stresses the role of:<br>A) aggregate
Q21: Monetarism suggests that:<br>A) money should be backed
Q22: The claim that reducing deficits in an
Q23: Which statement BEST explains why the Fed
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Q26: Despite of the budget deficits that resulted
Q27: Nearly all economists agree that increases in
Q28: Classical macroeconomists believed that monetary policy should
Q29: Which statement do economists broadly consider to
Q30: The Keynesian school of thought is that