1) if the Ricardian equivalence proposition holds, an increase in income taxes w

Question

1) if the Ricardian equivalence proposition holds, an increase in income taxes would
a. decrease current savings and current consumption
b. increase current saving and decrease current consumption
c. decrease current saving but not change current consumption
d. increase current saving and current consumption

2. consider each of the following statements:
- "under Ricardian equivalence, govt spending has no effect on output"

- "under Ricardian equivalence, changes in taxes have no effect on output".
a. both statements are true
b. 1 is true, 2 is false
c. 1 is false, 2 is true
d. both statement are false

3. which of the following statements is true about the US over the past 50 years
a. there is no evidence of political biz cycles in the US
b. under either party, output growth has been generally higher in the year preceding an election than in other years
c. the debt to GDP ratio has been roughly constant
d. none of the above

4. which of the following is part of M2 but not M1?
a. saving deposits
b. money make mutual funds shares
c. time deposit (under $100k)
d. all of the above
e. none of the above

5. the govt budget constraints tells us that the budget deficit is Qual to
a. the primary deficit plus the trade deficit plus interest on the debt
b. the primary deficit
c. the primary deficit plus interest on debt.
d. import minus export
e. interest on the debt

PLEASE HELP ME ANSWER THIS ECONOMICS QUESTIONS. THANKS

Explanation / Answer

(1) The current answer is option (C).

(2) The current answer is option (A).

(3) The current answer is option (D).

(4) The current answer is option (D).

(5) The current answer is option (A).

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