The Ricardo- Barro effect proposes that
A) people expect lower disposable incomes in the future if the government runs a deficit.
B) tax payers do not have the ability to neutralize the effects of government deficits.
C) interest rates rise because of government deficits.
D) people expect government budget deficits to increase their incomes.
Correct Answer:
Verified
Q183: According to the Ricardo- Barro effect, government
Q184: In the absence of the Ricardo- Barro
Q185: The Ricardo- Barro effect of a government
Q186: The term "crowding out" relates to
A) decreases
Q187: The tendency for private saving to increase
Q189: A government budget deficit the demand for
Q190: The Ricardo- Barro effect proposes that government
Q191: If government saving is negative (that is,
Q192: The crowding out effect refers to
A) government
Q193: The idea that a government budget deficit
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