Multiple Choice
The Ricardian Equivalence proposition suggests that a tax increase that causes a budget surplus will
A) cause an increase in output.
B) cause no change in output.
C) cause a reduction in output.
D) a reduction in consumption.
Correct Answer:

Verified
Correct Answer:
Verified
Q65: The debt-ratio is the ratio of the
Q66: In the short run,an increase in government
Q67: The United States financed the additional government
Q68: The difference between the official and correct
Q69: An increase in money growth,holding all other
Q71: Seignorage is defined as which of the
Q72: In the medium run,a tax cut that
Q73: Siegnorage is equal to<br>A)the rate of inflation.<br>B)one
Q74: Government default is also called<br>A)debt restructuring.<br>B)debt rescheduling.<br>C)private
Q75: When the economy is in a liquidity