Economics · Public Economics and Macroeconomic Theory
Which of the following statements regarding the functions and theoretical frameworks of a public budget is/are correct? 1. The allocation function of the budget includes correcting negative externalities using corrective taxes. 2. The Haavelmo Theorem states that in a simple Keynesian model, the balanced budget multiplier is equal to one. 3. If the primary deficit is zero, the debt-to-GDP ratio remains stable when the nominal growth rate of GDP equals the nominal interest rate.
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1, 2 and 3
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