Question Description
A government cuts taxes and runs a budget deficit in order to stimulate consumer spending. However, consumer responds to it by increasing savings instead of spending more. The forward looking approach of consumers is based on the fact that increased borrowings by the government will be repaid by taxes in future. This will lead to a similar impact on the economy as borrowing by the government today.Which of the following is best described in the passage given above?a)Ricardian equivalenceb)Goodhart’s lawc)Okuns Lawd)Grandfather clauseCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A government cuts taxes and runs a budget deficit in order to stimulate consumer spending. However, consumer responds to it by increasing savings instead of spending more. The forward looking approach of consumers is based on the fact that increased borrowings by the government will be repaid by taxes in future. This will lead to a similar impact on the economy as borrowing by the government today.Which of the following is best described in the passage given above?a)Ricardian equivalenceb)Goodhart’s lawc)Okuns Lawd)Grandfather clauseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A government cuts taxes and runs a budget deficit in order to stimulate consumer spending. However, consumer responds to it by increasing savings instead of spending more. The forward looking approach of consumers is based on the fact that increased borrowings by the government will be repaid by taxes in future. This will lead to a similar impact on the economy as borrowing by the government today.Which of the following is best described in the passage given above?a)Ricardian equivalenceb)Goodhart’s lawc)Okuns Lawd)Grandfather clauseCorrect answer is option 'A'. Can you explain this answer?.

Solutions for A government cuts taxes and runs a budget deficit in order to stimulate consumer spending. However, consumer responds to it by increasing savings instead of spending more. The forward looking approach of consumers is based on the fact that increased borrowings by the government will be repaid by taxes in future. This will lead to a similar impact on the economy as borrowing by the government today.Which of the following is best described in the passage given above?a)Ricardian equivalenceb)Goodhart’s lawc)Okuns Lawd)Grandfather clauseCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.

Here you can find the meaning of A government cuts taxes and runs a budget deficit in order to stimulate consumer spending. However, consumer responds to it by increasing savings instead of spending more. The forward looking approach of consumers is based on the fact that increased borrowings by the government will be repaid by taxes in future. This will lead to a similar impact on the economy as borrowing by the government today.Which of the following is best described in the passage given above?a)Ricardian equivalenceb)Goodhart’s lawc)Okuns Lawd)Grandfather clauseCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A government cuts taxes and runs a budget deficit in order to stimulate consumer spending. However, consumer responds to it by increasing savings instead of spending more. The forward looking approach of consumers is based on the fact that increased borrowings by the government will be repaid by taxes in future. This will lead to a similar impact on the economy as borrowing by the government today.Which of the following is best described in the passage given above?a)Ricardian equivalenceb)Goodhart’s lawc)Okuns Lawd)Grandfather clauseCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for A government cuts taxes and runs a budget deficit in order to stimulate consumer spending. However, consumer responds to it by increasing savings instead of spending more. The forward looking approach of consumers is based on the fact that increased borrowings by the government will be repaid by taxes in future. This will lead to a similar impact on the economy as borrowing by the government today.Which of the following is best described in the passage given above?a)Ricardian equivalenceb)Goodhart’s lawc)Okuns Lawd)Grandfather clauseCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of A government cuts taxes and runs a budget deficit in order to stimulate consumer spending. However, consumer responds to it by increasing savings instead of spending more. The forward looking approach of consumers is based on the fact that increased borrowings by the government will be repaid by taxes in future. This will lead to a similar impact on the economy as borrowing by the government today.Which of the following is best described in the passage given above?a)Ricardian equivalenceb)Goodhart’s lawc)Okuns Lawd)Grandfather clauseCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A government cuts taxes and runs a budget deficit in order to stimulate consumer spending. However, consumer responds to it by increasing savings instead of spending more. The forward looking approach of consumers is based on the fact that increased borrowings by the government will be repaid by taxes in future. This will lead to a similar impact on the economy as borrowing by the government today.Which of the following is best described in the passage given above?a)Ricardian equivalenceb)Goodhart’s lawc)Okuns Lawd)Grandfather clauseCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.