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hammer [34]
3 years ago
14

Ricardian equivalence:

Social Studies
1 answer:
V125BC [204]3 years ago
6 0

Answer:

Ricardian equivalence:

a. Occurs when people see that lower taxes today means higher taxes in the future, so instead of spending their tax cut, they save it to pay future taxes.

Explanation:

The Ricardian equivalence is a theory given by the English economist David Ricardo in the 19th century, where <em>he suggests that the fiscal deficit </em>(when the nation spends more than obtain) <em>doesn't affect the aggregate demand </em>(the possibility of the country to acquire products) by two reasons:

1. Finances the spend with more high taxes, it could occur in the present or in the future, but <em>if the people see that the taxes are low and the country is spending, they save money for the future higher taxes</em>.  

2. increasing external debt.    

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Explanation:

Elastic Clause grants Congress power to pass any laws considered “necessary and proper” for effectively exercising its “enumerated” powers.

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Richard is a union janitor who makes quite a bit more money than many of the tenants in the building he maintains. Lenski would
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When individuals experience status inconsistency, their likely choice of behaviiur is to claim the higher status.

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Answer:

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