A. Explain the concept of Ricardian Equivalence. Do you believe it holds in practice? Why or why not? Explai

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
Section: Chapter Questions
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A. Explain the concept of Ricardian Equivalence. Do you believe it holds in practice? Why or why not? Explain.

B. Under what circumstances might an increase in worldwide interest rates r* be beneficial for a small open economy (SOE)? Explain.

C. What argument, based on macroeconomic theory, might a government use to justify shutting down a newspaper critical of its policies? If you were asked to provide a counterargument, what would it be? Explain.

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