According to the Ricardian Equivalence Proposition,current Deficits

question 38

Multiple Choice

According to the Ricardian equivalence proposition,current deficits

• A)will not affect consumption or national saving.
• B)will affect consumption but not national saving.
• C)will affect national saving but not consumption.
• D)will affect both consumption and national saving.

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Definitions:

Desirable

Something that is wanted or wished for because it is considered attractive, satisfying, or beneficial.

Operating Asset

Assets used in the day-to-day operations of a business to generate revenue, such as machinery, buildings, and equipment.

Plant Expansion

Plant expansion refers to the process of enlarging the capacity or physical size of a manufacturing facility to increase production capabilities, accommodate new machinery, or improve efficiency.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.