3. (Multiple Choice) If Ricardian Equivalence holds, what variable changes between the two equilibrium? a. The interest rate b. Consumption allocations c. Government expenditures d. Household savings e. Wages (assuming there is production)

3. (Multiple Choice) If Ricardian Equivalence holds, what variable changes between the two equilibrium? a. The interest rate b. Consumption allocations c. Government expenditures d. Household savings e. Wages (assuming there is production)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Question

3. (Multiple Choice) If Ricardian Equivalence holds, what variable changes between the
two equilibrium?
a. The interest rate
b. Consumption allocations
c. Government expenditures
d. Household savings
Wages (assuming there is production)
e.

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(11) The slope of the consumption function is the __________________________ __________________________ __________________________.