Based on the Ricardian equivalence, increased government borrowing by $1 will cause: The public to increase savings by $1 The public to decrease savings by $1 Private investment to increase by $1 Public investment to fall by more than $1
Based on the Ricardian equivalence, increased government borrowing by $1 will cause: The public to increase savings by $1 The public to decrease savings by $1 Private investment to increase by $1 Public investment to fall by more than $1
Chapter20: Exchange Rates And The Macroeconomy
Section: Chapter Questions
Problem 3TY
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Based on the Ricardian equivalence, increased government borrowing by $1 will cause:
The public to increase savings by $1
The public to decrease savings by $1
Private investment to increase by $1
Public investment to fall by more than $1
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