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

In 2001, the Bush Administration increased spending by $100 billion and raised taxes by $70 billion at thesame time. It’s likely that:A. interest rates will most likely not increase.B. interest rates will most likely increase.C. business investment is not likely to change.D. business investment is likely to increase due to crowding out

Which statement is most likely consistent with the classical view? A.The Congress should set interest rate targets. B.The monetary policy is more effective than Keynesian theory. C.Fiscal policy works better than monetary policy. D.Fiscal and monetary policies cause more economic instability than stability.

Crowding Out Effect for private borrowers may come due to the fact that Lenders prefer to lend money to commercial banks a. Lenders prefer to lend money to the US government Ob. Lenders prefer to lend money to the Federal Reserve C. Lenders prefer to lend money to foreign investors d.

Suppose the government ran a budget surplus in 2018 and a larger surplus in 2019. The loanable funds model would predict that, as a result of the increase in the surplus, A. both the government debt and interest rates increased between 2018 and 2019. B. the government debt decreased and interest rates increased between 2018 and 2019. both the government debt and interest rates decreased between 2018 and 2019. C. D. the government debt increased and interest rates decreased between 2018 and 2019.

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From the 1960s to​ 2020, transfer payments     A. have declined by half as a percentage of total federal government expenditures.   B. have grown very slowly as a percentage of total federal government expenditures.   C. remained the same percentage of total federal government expenditures.   D. have risen from 25 percent to just over 50 percent percent of federal government expenditures.

Currently, the US has a total consumption of $12 trillion, saving of $6 trillion, tax revenues of $5 trillion, and government spending of $7 trillion. Relative to a balanced budget, the government’s actions in this economy will cause: a. Higher interest rates today and reduced economic growth for future generations. b. Lower interest rates today and reduced economic growth for future generations. c. Higher interest rates today and enhanced economic growth for future generations. d. Lower interest rates today and enhanced economic growth for future generations.