Answered: The theory of Ricardian equivalence…

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The theory of Ricardian equivalence describes the consumer as. a. Myopic b. Forward looking c. Rational d. Savers

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 1QFR

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

The theory of Ricardian equivalence describes the consumer as.
a. Myopic
b. Forward looking
c. Rational
d. Savers

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