Ricardian Equivalencecan Be Said to Hold If

question 54

Multiple Choice

Ricardian equivalencecan be said to hold if:

• A)taxation has greater effect on private spending than government borrowing.
• B)taxation has a lesser effect on private spending than government borrowing.
• C)government borrowing does not affect private consumption while taxation has a negative impact on private consumption.
• D)government spending activities financed by taxation and those financed by borrowing have the same effect on private spending.
• E)government spending activities financed by taxation and those financed by borrowing have no effect on private spending.

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Definitions:

Standard Deviation

A measure of how spread out the numbers in a data set are, indicating the variability around the mean.

Variance

A measure of dispersion showing how much the data points in a set differ from the mean, calculated as the average of the squared differences from the mean.

Final Average

The weighted mean of a student's academic performance across courses over a term or academic year.

Mode

The value that appears most frequently in a data set, representing the most common or popular outcome among the observed values.