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

---

Definitions:

Reinforcer

In behavioral psychology, an event or stimulus that increases the likelihood of a behavior being repeated.

Behavior

The actions or reactions of a person or animal in response to external or internal stimuli.

Contingent Reinforcement

A method of reinforcing behavior only after the behavior is exhibited, used in behavior modification programs.

Reinforcer

is a stimulus, which, when following a behavior, increases the likelihood of that behavior being repeated.