Macroeconomists are interested in how consumers respond to changes in the market real interest rate because
A) interest rates are an important channel for the effects of monetary and fiscal policies.
B) substitution effects and income effects net out in the aggregate.
C) of the permanent income hypothesis.
D) future income affects current consumption.
Correct Answer:
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Q45: If government spending is held constant and
Q46: The Ricardian equivalence theorem implies that
A) government
Q47: The Ricardian Equivalence says
A) whatever the level
Q48: In the data,which of the following is
Q49: Ricardian equivalence implies
A) that when the government
Q51: For a competitive equilibrium in a two-period
Q52: The government's present value budget constraint states
Q53: The two primary explanations for the excess
Q54: If government spending does not change,an increase
Q55: An increase in the real interest rate
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