Ricardian Equivalence Maintains That an Increase in Government Spending Financed

question 43

Multiple Choice

Ricardian Equivalence maintains that an increase in government spending financed by debt will result in a corresponding increase in

• A) savings, in anticipation of future taxes.
• B) output and consumption, stimulated by the additional government spending.
• C) consumer spending, in anticipation of lower future taxes.
• D) aggregate demand, because the additional spending was financed by borrowing rather than current taxation.

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Definitions:

Workplace Improvement

Efforts and initiatives undertaken to enhance the working conditions, productivity, and overall environment of a workplace.

Certification Election

A voting process conducted by a labor board to determine whether workers wish to be represented by a union and, if so, which union will serve as their bargaining agent.

Union Representation

The act of a labor union serving as an intermediary between its members and the employer, negotiating contracts and addressing grievances.

Authorization Card

A document signed by an employee to indicate their wish to be represented by a labor union in collective bargaining with their employer.