Suppose you are analyzing data for an economy in which Ricardian neutrality holds true. If the budget deficit increases by 50, then:
A. investment will increase by 50
B. investment will decrease by 50
C. private savings will decrease by 50
D. private savings will increase by 50
Answer:D
Suppose you are analyzing data for an economy in which Ricardian neutrality holds true. If the budget deficit increases by 50, then:
A. investment will increase by 50 B. investment will decrease by 50 C. private savings will decrease by 50 D. private savings will increase by 50
Explanation: Type: Multiple Choice