Ricardian equivalence implies A) that when the government ...

[cookcarl]

Ricardian equivalence implies
 
  A) that when the government borrows more, the market real interest rate goes up.
  B) that if the government saves less, then the nation saves less.
  C) that when taxes are cut people consume more.
  D) that consumers will save their tax cuts to pay their future taxes.

Question 2

In the Great Depression, investment spending fell by ________.
 
  A) nine-tenths of one percent
  B) nine percent
  C) ninety percent
  D) nine hundred percent

[Jmfn03]

Answer to Question 1

D

Answer to Question 2

C

[cookcarl]

Thank you

[Jmfn03]

Happy to help you