The Ricardo-Barro Effect Asserts That

question 206

Multiple Choice

The Ricardo-Barro effect asserts that

• A) government saving affects private saving.
• B) government budget deficits crowd out private borrowing.
• C) government expenditure affects private expenditure.
• D) taxation raises interest rates.

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Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from the total revenue.

Net Profit

The amount of money remaining after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Zone Price

The price based on geographic location or zone of customers.