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Oksi-84 [34.3K]
3 years ago
15

Ricardian equivalence means that:

Business
1 answer:
kati45 [8]3 years ago
6 0

Answer:

changes in private savings offset any changes in the government deficit

Explanation:

Ricardian equivalence means that private saving changes offset any changes in the government budget. Therefore, if the deficit increases by 30, private saving also increases by 30 but the trade deficit and the budget deficit will not change.

In case of the Ricardian equivalence, economic agents are assumed to be perfectly rational. According to them, higher taxes are required to repay the debt in case of an increase in deficit-financed government spending.

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4 years ago
A firm has a debt-equity ratio of .57. what is the total debt ratio? .36
Dmitriy789 [7]

Answer: The total debt ratio is 0.36

The debt ratio and the debt equity ratio are established by the following identity:

Debt Ratio = \frac{D/E}{1+D/E}

where D/E is debt equity ratio

Substituting the value of D/E ratio in the formula above we get,

Debt Ratio = \frac{0.57}{1+0.57}

Debt Ratio = \frac{0.57}{1.57}

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4 0
3 years ago
Juice Drinks has beginning inventory of $10,000, purchases in the amount of $150,000, and ending inventory of $8,000. Juice Drin
astra-53 [7]

Answer:

$152,000

Explanation:

Given the data as shown below;

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Ending inventory = $8,000

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= $152,000

8 0
4 years ago
If a use case becomes too complex, it should be _____.
a_sh-v [17]

Answer:

The correct option here is B) decomposed into a set of use cases.

Explanation:

Use case can be defined as a methodology which is used in system analysis, so that system requirements can be identified, clarified and organized in a proper way. This use case consists of all system activities , which are significant to the users. It is made up of set of possible interaction sequences which take place between system and user in an environment towards a particular goal. So when the use case becomes too complex, then it can be decomposed in to a set of use cases.

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3 years ago
When adults in a work setting take responsibility for teaching and advising students it is called question 1 options: mentoring.
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3 years ago
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