If Government Spending Is Held Constant and Ricardian Equivalence Holds

question 22

Multiple Choice

If government spending is held constant and Ricardian equivalence holds,

• A) an increase in the government budget deficit is always matched by a reduction in private savings.
• B) an increase in government savings is always matched by an increase in the government budget deficit.
• C) an increase in government savings is always matched by an equal increase in private savings.
• D) an increase in government savings is always matched by an equal reduction in private savings.
• E) an increase in government savings is always matched by an increase in the real interest rate.

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The exclusion from a society or group, typically as a method of punishing or deterring undesirable behavior.

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The response of the brain to internal or external stimuli, involving neural and chemical processes.

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