Ricardian Equivalence Refers to

question 3

Multiple Choice

Ricardian equivalence refers to

• A) the equivalence of taxes and revenues in fiscal policy.
• B) the fact the households incorporate inflationary expectations in calculating interest payments.
• C) the equivalence of imports and exports in an open economy.
• D) the possibility that households may say save now so that they can pay the higher taxes later if there is a tax cut at the present time which drives up future interest payments.
• E) none of the above.

---

Definitions:

Sexual Behavior

Actions related to seeking pleasure or expressing intimacy, including both physical and emotional aspects.

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Statistically Based

Relating to or deriving from the use of statistical methods or principles to analyze or understand data.

Exaggeration

The act of making something more noticeable or prominent than it actually is, often by overstating or enlarging the facts.