If People Are Finite-Lived, Ricardian Equivalence Can Fail Because

question 64

Multiple Choice

If people are finite-lived, Ricardian equivalence can fail because

• A)lifetime wealth will change for those currently alive.
• B)there is intragenerational redistribution.
• C)people cannot predict the future.
• D)people make bequests.
• E)this implies taxes must be distorting.

Recognize the impact of economies of scale on trade benefits.

Understand the variety of goods and services trade brings to a country.

Comprehend the reasons countries engage in trade.

Understand the implications of trade restrictions like tariffs and quotas on international relations and domestic industries.

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