According to the Ricardian View of Government Deficits

question 18

Multiple Choice

According to the Ricardian view of government deficits,

• A) any future burden of tax financing should be ignored.
• B) government deficits reduce interest rates.
• C) taxpayers are less capable of saving when debt finance is used rather than tax finance.
• D) the private sector supply of loanable funds will increase in the face of government deficits.

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Definitions:

Positive Symptoms

Symptoms of schizophrenia that are excesses of behavior or occur in addition to normal behavior; hallucinations, delusions, and distorted thinking.

Schizophrenia

Schizophrenia is a chronic and severe mental disorder that affects how a person thinks, feels, and behaves, characterized by delusions, hallucinations, and impaired cognitive function.

Normal Functions

The regular operations or activities that are typical for a system, organ, or part, ensuring proper health and performance.

Hallucinations

False perceptions of objects, events, or sensations without any external stimulus, often occurring in mental disorders.