The Ricardo-Barro Effect Holds That

question 67

Multiple Choice

The Ricardo-Barro effect holds that

• A)equal increases in taxes and government expenditures have no effect on equilibrium real GDP.
• B)a government budget deficit has no effect on the real interest rate.
• C)a government budget deficit crowds out private investment.
• D)a government budget deficit induces a decrease in saving that magnifies the crowding out effect.
• E)none of the above.

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Definitions:

Balanced Scorecard

A strategic planning and management system used for aligning business activities to the vision and strategy of the organization, improving internal and external communications, and monitoring organizational performance against strategic goals.

Inspection Time

The amount of time dedicated to examining and verifying the quality of products or materials.

Value-Added

The enhancement a company gives its product or service before offering the product to customers, adding value beyond the cost of the raw materials.

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish and measure the performance against strategic goals.