Author Question: Suppose the public increases the level of savings in anticipation of higher future taxes to service ... (Read 68 times)

tatyanajohnson · **on:** Jun 30, 2018

Suppose the public increases the level of savings in anticipation of higher future taxes to service the national debt. This is an example of

A) Reaganomics. B) Ricardian equivalence.
C) Smithsonian equivalence. D) Monetary equivalence.

Question 2

Suppose that a tire factory produces 825,000 of output and causes 70,000 worth of pollution as a result of production. The tire factory's official contribution to GDP would be ________ and its overall contribution to society would be ________.

A) 825,000; 755,000 B) 825,000; 895,000 C) 895,000; 825,000 D) 755,000; 825,000