16 Nov 2021
Problem 4
Page 759
Section SELF: CHECK QUESTIONS
Chapter 31: The Impacts of Government Borrowing
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16 Nov 2021
Introduction
Ricardian equivalence is a theory that states that any shift in the countries budget is equalized by the shift in private savings. So, if a countries budget is in deficit and the deficit increases by certain amount, then the private savings will also increase by the same amount, and vice versa.
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