When the deficit increases under the concept of Ricardian Equivalence, what happens to savings in ...

Author Question: When the deficit increases under the concept of Ricardian Equivalence, what happens to savings in ... (Read 36 times)

karlynnae

Hero Member
Posts: 599

on: Jun 30, 2018

When the deficit increases under the concept of Ricardian Equivalence, what happens to savings in the private sector?

A) savers hedge on purchases B) nothing
C) savings decrease D) savings increase

Question 2

The price level is held constant when moving along the planned expenditures curve.

Indicate whether the statement is true or false

Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7^th Edition

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T4T

Sr. Member
Posts: 348

Reply #1 on: Jun 30, 2018

Answer to Question 1

D

Answer to Question 2

TRUE

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