Author Question: Which condition would generate a violation of the Ricardian Equivalence? A) downward sloping ... (Read 18 times)

cool · **on:** Jun 30, 2018

Which condition would generate a violation of the Ricardian Equivalence?

A) downward sloping labor supply curve
B) underdeveloped credit markets
C) inflationary monetary policy
D) deflationary monetary policy

Question 2

A good is normal for a consumer if

A) it is always consumed in a consistent quantity.
B) its consumption rises when income rises.
C) its consumption falls when income rises.
D) some minimal level of the good must be consumed to assure the consumer's survival.