19. The Ricardian Equivalence proposition suggests that a tax increase that causes a budget surplus will (A)cause an increase in output. (B) cause no change in output. (C) cause a reduction in output. (D)a reduction in consumption.

6. Suppose the price of A is $20, the price of B is $10, and that the consumer is currently spending all available income. At the consumer’s current consumption basket the marginal utility of A is 8 and the marginal utility of B is 2. (A)The consumer is currently maximizing utility. (B) The consumer could increase utility by consuming more of good A and less of good B . (C) The consumer could increase utility by consuming more of good B and less of good A . (D)Nothing can be said about the consumer’s utility because we do not know the consumer’s income or utility function.

19. The Ricardian Equivalence proposition suggests that a tax increase that causes a budget surplus will
(A)cause an increase in output.
(B) cause no change in output.
(C) cause a reduction in output.
(D)a reduction in consumption.

相關試題

相關試卷