An Important Reason Why Ricardian Equivalence May Fail Is If

question 33

Multiple Choice

An important reason why Ricardian equivalence may fail is if

• A) borrowing and lending are 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.

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Definitions:

Preconceptual Phase

A stage prior to conception, focusing on health and behaviors that can influence the well-being of a future pregnancy and offspring.

Cognitive Development

The process of growth and change in intellectual abilities such as thinking, reasoning, and understanding.

Developmental Task

A task which is expected to be accomplished during a particular stage of life, contributing to the successful development of an individual.

Havighurst

Refers to Robert Havighurst, an American psychologist and educator known for his theories on human development and aging.