From the Ricardian Point of View, a Consumer Should Not

question 8

Multiple Choice

From the Ricardian point of view, a consumer should not raise his or her consumption when taxes are cut but government spending is not cut because:

• A)the government is going to raise taxes by exactly as much as the cut in the next year.
• B)the government is going to raise taxes by exactly as much as the cut plus interest in the next year.
• C)the government is sure to raise taxes by an amount equal in present value to the debt incurred this year, sometime in the taxpayer's lifetime.
• D)even if the government does not raise enough extra taxes during the taxpayer's lifetime to pay

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Definitions:

Hormone Treatment

The use of hormones in medical therapy to treat or alleviate symptoms of conditions such as hormonal imbalances, menopause, or certain cancers.

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A gene that has a mutation or alteration, leading to a malfunctioning protein that can cause genetic disorders.

Stereotypes

Oversimplified, widely held beliefs or generalizations about the characteristics of specific groups of people.

Gender Equality

The state of equal ease of access to resources and opportunities regardless of gender, including economic participation and decision making, and the state of valuing different behaviors, aspirations and needs equally, regardless of gender.