Choose the Statement That Is Incorrect

question 29

Multiple Choice

Choose the statement that is incorrect.

• A)According to the Ricardo-Barro effect, taxpayers are rational people who know that a budget deficit today means that future taxes will be higher and future disposable incomes will be smaller.
• B)According to the Ricardo-Barro effect, a budget deficit has no effect on either the real interest rate or investment.
• C)Most economists believe that the Ricardo-Barro effect holds in the market for loanable funds.
• D)According to the Ricardo-Barro effect, the quantity of loanable funds demanded increases when a government budget deficit occurs, and private saving and the private supply of loanable funds increase to match the quantity of loanable funds demanded.
• E)All of the above statements are correct.

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Definitions:

Noncoerciveness

The principle or quality of refraining from using force or pressure in dealing with others, especially in the context of sexual activities.

Statutory Rape

A legal term for sexual activities involving an adult and a minor below the age of consent, regardless of consent on the part of the minor.

Sexual Contact

Any form of physical interaction between individuals involving sexual organs or activities intended to arouse or gratify sexual desires.

Older Relative

A family member who is significantly older than oneself, often used in the context of relationships and familial lineage.