The Ricardian Equivalence Proposition States That an Increase in the Deficit

question 63

Multiple Choice

The Ricardian equivalence proposition states that an increase in the deficit causes

• A)consumption to decrease.
• B)savings to decrease.
• C)investment to decrease.
• D)all of the above
• E) none of the above

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Definitions:

Fair Outcomes

Equitable and impartial results or conclusions in a given situation, ensuring justice and equality.

Procedures

Established methods or steps for conducting business, operations, or other routine tasks to achieve consistency and efficiency.

Equity Theory

A theory of motivation that suggests individuals are motivated by a sense of fairness in their interactions.

Input

Contributions, resources, or information provided towards a process or system in order to achieve an output or result.