An Important Reason Why Ricardian Equivalence May Fail Is If

question 45

Multiple Choice

An important reason why Ricardian equivalence may fail is if

• A) borrowing and lending is done through intermediaries.
• B) government debt incurred today may not be paid off until after some current consumers are deceased.
• C) state and local governments also engage in debt finance.
• D) some consumers are borrowers, while other consumers are lenders.
• E) real interest rates start to increase.

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The invasion and multiplication of microorganisms such as bacteria, viruses, and fungi that are not normally present within the body, often leading to disease or illness.

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An infection caused by Streptococcus bacteria, characterized by a sore and inflamed throat.