1.If a government runs a deficit, it will                    its outstanding debt. 2. Proponents of Ricardian equivalence believe that deficits do not really matter as long as taxes are raised in the...

1.If a government runs a deficit, it willits outstanding debt.

2. Proponents of Ricardian equivalence believe that deficits do not really matter as long as taxes are raised in the future.
 (True/False)

3. Government deficits can be financed by new borrowing from the public and/or by creating new

                                   .

4. If a government finances its deficits by creating new money, the result will be
.