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A lump-sum increase in current taxes would cause interest rates to fall if Ricardian equivalence held. fall if Ricardian equivalence did not hold. fall regardless of whether Ricardian equivalence

 A lump-sum increase in current taxes would cause interest rates to fall if Ricardian equivalence held. fall if Ricardian equivalence did not hold. fall regardless of whether Ricardian equivalence held. rise.
Question 12 (1 point) An economy has government purchases of 2000. Desired national saving and desired investment are given by sd = 200 + 5000r + 0.1Y - 0.2G id = 1000 - 4000r When the full-employment level of output equals 5000, then the real interest rate that clears the goods market will be 7.78%. 14.44%. 23.33%. 10.00%

Apr 12 2021 View more View Less

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