Describe four problems affecting measurement of the government budget deficit. According to the traditional view of government debt, how does a debt-financed tax cut
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Describe four problems affecting measurement of the government budget deficit.
According to the traditional view of government debt, how does a debt-financed tax cut
affect public saving, private saving, and national saving?
According to the Ricardian view of government debt, how does a debt-financed tax cut
affect public saving, private saving, and national saving?
Do you find the traditional or the Ricardian view of government debt more credible? Why?
Give three reasons that a budget deficit might be a good policy choice.
Why might the level of government debt affect the government’s incentives regarding
money creation?
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