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pickupchik [31]
3 years ago
10

A government deficit has decreased from 100 to 60. The country's trade deficit is 120 and private savings equal 80 and investmen

t equals 100. If Ricardian neutrality holds true, after this change in the government's budget, private savings will equal:
Business
1 answer:
charle [14.2K]3 years ago
3 0

Answer:

40

Explanation:

According to Ricardian theory, any change in budgets deficits or surpluses should be completely offset by an equal change in private savings.

In this case, the original amount of private savings was 80, but since the budget deficit decreased by 40, then the private saving should also decrease by 40. The total private saving = 80 - 40 = 40

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8 0
3 years ago
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3 years ago
Which of the following set the first minimum wage? The Taft-Hartley Act of 1947 The AFL-CIO The Norris-LaGuardia Act of 1932 The
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Explanation:

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3 years ago
he Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the u
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Please see attached detailed explanation of the above questions and answers.

8 0
2 years ago
Human resources that perform the functions of organizing, managing, and assembling the other factors of production are
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