The proposition that states that whether government finances its deficit by borrowing or by increasing taxes is irrelevant is called:
A. the Ricardian Equivalence.
B. the quantity theory of money.
C. the law of demand.
D. monetizing the deficit.
Answer:A
The proposition that states that whether government finances its deficit by borrowing or by increasing taxes is irrelevant is called:
A. the Ricardian Equivalence. B. the quantity theory of money. C. the law of demand. D. monetizing the deficit.