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Author Question: When the deficit increases under the concept of Ricardian Equivalence, what happens to savings in ... (Read 35 times)

karlynnae

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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 ¦ 7th Edition
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T4T

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

TRUE


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