If the Ricardian Equivalence Proposition Is Correct,then

question 41

Multiple Choice

If the Ricardian equivalence proposition is correct,then

• A)deficits harm future generations.
• B)deficits reduce investment spending.
• C)deficits stimulate the economy in the short run.
• D)all of the above
• E) none of the above

---

Definitions:

Critical Thought

The intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach a conclusion.

Key Terms

Essential words or phrases that are crucial for understanding a particular subject or area of study.

Operational Definition

A definition with a standardized measure for use in data collection and interpretation.

Precising Definition

A definition that seeks to make more precise what was previously vague or fuzzy.