Households may feel wealthier due to a tax cut, if:
A) they are very concerned about future generations.
B) they expect the bonds created by the deficit to be paid off after their lifetime.
C) they are using an infinite planning horizon.
D) they plan to leave a bequest to their heirs.
Correct Answer:
Verified
Q16: The governments sources of funds include:
A)transfer payments.
B)printing
Q17: If the government reduces taxes by €1
Q18: Ricardian equivalence implies that a government budget
Q19: A balanced government budget is one where:
A)government
Q20: The governments sources of funds include:
A)taxes.
B)government purchases.
C)paying
Q22: Households may feel wealthier due to a
Q23: The standard view of the budget deficit
Q24: The standard view of the budget deficit
Q25: The standard view of the budget deficit
Q26: If households ignore effects on future generations,
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