The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly known as: a) Ricardian theory of equivalence b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

The idea that irrespective of how a government chooses to increase
spending, either by debt financing or tax financing, the outcome will be the same
and demand will remain unchanged, is popularly known as:
a) Ricardian theory of equivalence
b) Ricardian theory of competitive advantage
c) Ricardian theory of stability
d) None of the above
by

1 Answer

Answer :

a) Ricardian theory of equivalence
David Ricardo was a British political economist and his most famous theory was that
of comparative advantage (along with above theory of Ricardian equivalence) .
Comparative advantage refers to the doctrine that any nation should use its
resources solely in industries where it has the most international competitiveness
by

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