The Proposition That an Increase in the Federal Budget Deficit

question 160

Multiple Choice

The proposition that an increase in the federal budget deficit caused entirely by a current tax cut has no effect on aggregate demand is called the

• A) indirect effect.
• B) interest rate effect.
• C) open-economy effect.
• D) Ricardian equivalence theorem.

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Definitions:

Personality

A unique set of emotional, thought, and behavioral patterns that define an individual’s personal style of interacting with the environment.

Research Studies

Systematic investigations designed to develop or contribute to generalizable knowledge through careful collection and analysis of data.

Personality Research

The scientific study focused on understanding variations in individuals' thoughts, feelings, and behaviors and how these differences relate to psychological processes.

Extraversion

A personality trait characterized by outgoingness, sociability, and a tendency to seek stimulation in the company of others.