If the Ricardian Equivalence Proposition Is Correct,then an Increase in the Deficit

question 28

Multiple Choice

If the Ricardian equivalence proposition is correct,then an increase in the deficit will lead to

• A)an increase in private saving.
• B)a decrease in investment spending.
• C)a lower standard of living in the future.
• D)all of the above
• E) none of the above

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Definitions:

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A group of people of Scottish and Irish ancestry, particularly those who settled in the Appalachian regions of the United States and were known for their herding skills.

Puritan

Puritan is a term used to describe members of a religious reform movement known for its strict moral code and emphasis on piety, originating in the 16th and 17th centuries.

Quaker

A member of the Religious Society of Friends, a Christian movement founded in mid-17th century England, emphasizing the direct experience of God within one's soul.

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