If the Ricardian equivalence held true, its graphical representation would show: The curve representing government borrowing and the one representing public savings would increase or decrease together. The curve representing government borrowing and the one representing public savings would change in opposite directions (if one rises, the other falls). The curve representing government borrowing and the one representing private investment would increase or decrease together. The curve representing government borrowing and the one representing private investment would change in opposite directions (if one rises, the other falls)

If the Ricardian equivalence held true, its graphical representation would show: The curve representing government borrowing and the one representing public savings would increase or decrease together. The curve representing government borrowing and the one representing public savings would change in opposite directions (if one rises, the other falls). The curve representing government borrowing and the one representing private investment would increase or decrease together. The curve representing government borrowing and the one representing private investment would change in opposite directions (if one rises, the other falls)

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter13: Federal Deficits, Surpluses, And The National Debt

Section: Chapter Questions

Problem 13SQ

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