All Else Equal, Ricardian Equivalence Predicts That People in an Economy

question 120

Multiple Choice

All else equal, Ricardian equivalence predicts that people in an economy will have a low _______ in response to a tax cut.

• A) marginal propensity to consume
• B) willingness to supply labor
• C) marginal propensity to save
• D) willingness to vote

---

Definitions:

Conscious Level

The degree of awareness an individual has about their thoughts, feelings, and surroundings.

Posttraumatic Growth

Posttraumatic growth is the positive psychological change experienced as a result of the struggle with highly challenging life circumstances, leading to a significant transformation in personal development.

Trauma

A deeply distressing or disturbing experience, often resulting in lasting psychological impact.

Healing

The process of recovery or restoration of health from an unbalanced, diseased, or damaged state.