According to the Ricardo-Barro effect,
A) government budget deficits increase householdsʹ expected future disposable income.
B) taxpayers fail to foresee that government deficits imply higher future taxes.
C) government deficits raise the real interest rate.
D) households increase their personal saving when governments run budget deficits.
Correct Answer:
Verified
Q159: Q160: A fall in the real interest rate Q161: If the Ricardo-Barro effect is present, a Q162: If the government begins to run a Q163: In the absence of a Ricardo-Barro effect, Q165: The Ricardo-Barro effect holds that Q166: The Ricardo-Barro effect of a government budget Q167: According to the Ricardo-Barro effect, Q168: If the Ricardo-Barro effect occurs, an in Q169: The tendency for private saving to increase
A)
A) a government
A) a government
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