Ricardian Equivalence theory is based on the view that ________. ...

[Arii_bell]

Ricardian Equivalence theory is based on the view that ________.
 
  A) the impact of a tax cut is felt primarily on domestic consumption spending
  B) households tend to take future events into account when engaging in economic decision-making
  C) the price of a commodity is negatively related to the quantity of that good demanded
  D) a trade-off exists between the use of monetary and fiscal policy in influencing the level of income

Question 2

Which of the following are arguments that have been and currently are used to justify protectionism?
 
  (a) The infant industry argument
  (b) Tariffs create lower profits, generate fewer jobs, and reduce wages in the U.S.
  (c) Countries should not operate on the basis of comparative advantage.
  (d) All of the above

[tjayeee]

Answer to Question 1

B

Answer to Question 2

(a)

[Arii_bell]

Thank you

[tjayeee]

Happy to help you