The Ricardian Equivalence Theorem Implies That

question 14

Multiple Choice

The Ricardian equivalence theorem implies that

• A) government debt policy must be handled correctly for the economy to prosper.
• B) the amounts of government spending are neutral.
• C) an increase in government spending has no effect on the economy, as long as there is an equal change in taxes.
• D) the timing of taxes collected by the government is neutral.
• E) the present value of government spending must be equal to the present value of taxes.

Distinguish between the procurement cycle, manufacturing cycle, and replenishment cycle.

Identify and describe push and pull processes in the supply chain.

Understand the components and goals of a supply chain.

Recognize the macro processes within a supply chain: CRM, SRM, and ISCM.

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Definitions:

Modified Capitalism

An economic system that incorporates elements of capitalism with various degrees of government intervention or social welfare policies.