Author Question: If the Ricardian equivalence proposition is correct, then an increase in the deficit will lead to ... (Read 77 times)

debasdf · **on:** Jun 30, 2018

If the Ricardian equivalence proposition is correct, then an increase in the deficit will lead to

A) an increase in private saving.
B) a decrease in investment spending.
C) a lower standard of living in the future.
D) all of the above
E) none of the above

Question 2

The Ricardian equivalence proposition states that an increase in the deficit causes

A) consumption to decrease.
B) savings to decrease.
C) investment to decrease.
D) all of the above
E) none of the above