Which of the Following Is NOT an Argument Against the Ricardian

question 65

Multiple Choice

Which of the following is NOT an argument against the Ricardian equivalence theorem?

• A)the lack of the central bank's independency
• B)failure to leave bequests
• C)non-lump-sum taxes
• D)shortsightedness

---

Definitions:

Dividends

Profit payouts by a corporation to its shareholders, usually as a method of distributing earnings.

Initial Value Method

An accounting approach for investments where the investment is recorded at its original cost without subsequent adjustments for changes in market value.

Equity Method

A method of accounting for investments where the investor's share of the investee's profits or losses is recognized in the investor's income statement.

Investment in Pitts Co.

The allocation of resources, typically financial, into Pitts Company with the expectation of generating a future financial return.