According to Ricardian Equivalence,the Key Consequence of an Increase in the Budget

question 54

Multiple Choice

According to Ricardian equivalence,the key consequence of an increase in the budget deficit that arises from a tax cut is ________.

• A)a decrease in private investment
• B)an increase in inflation
• C)an increase in the public's holding of government bonds
• D)an increase in the supply of money

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Definitions:

Downsizing

Downsizing is the process of reducing the size of a company by eliminating staff positions, often to cut costs or improve efficiency.

Project Sabotage

The act of deliberately destroying or hindering a project's success through mismanagement, obstruction, or intentional errors.

Non-participative Management

A management style where decision-making is centralized with little to no input from subordinate employees, limiting their participation in organizational processes.

Performance Rewards

A system or mechanism designed to provide compensation, recognition, or benefits to employees based on their job performance.