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:

Cyclohexanone Oxime

An organic compound resulting from the reaction of cyclohexanone with hydroxylamine, often used as an intermediate in the synthesis of caprolactam.

Clemmensen

A chemical reduction process that converts carbonyl groups in aldehydes or ketones to alkanes using zinc amalgam and hydrochloric acid.

Wolff-Kishner

A chemical reduction process that completely removes oxygen from a carbonyl group, converting it into a methylene group.

Hydroxylamine

A compound with the formula NH2OH, used as a reducing agent and in the synthesis of various chemicals.