"> (Answered) Consider the following statement: "A deficit during a war can be a good thing. - Tutorials Prime

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(Answered) Consider the following statement: "A deficit during a war can be a good thing.


Consider the following statement: "A deficit during a war can be a good thing.


Consider the following statement: “A deficit during a war can be a good thing. First, the deficit is temporary, so after the war is over, the government can go right back to its old level of spending and taxes. Second, given that the evidence supports the Ricardian equivalence proposition, the de cit will stimulate the economy during wartime, helping to keep the unemployment rate low.” Identify the mistakes in this statement. Is anything in this statement correct? 

 


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Jan 02, 2020

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