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If the Ricardian equivalence proposition is correct, then O A. deficits reduce investment spending. O B. deficits harm future generations. O C. deficits stimulate the economy in the short run. O D. all of the above. O E. none of the above.In the IS-LM-PC model studied in class, if the central bank wants to increase the inflation rate in the medium run, it should: O A. reduce the growth rate of money O B. create a temporary expansion to decrease unemployment. O C. increase the level of potential output O D. increase the growth rate of money O E. none of the above .O -O F6 F 5 F4 esc F3 C1 o & a O 2 3 4 5 7In the IS-LM-UIP model with a fixed exchange rate regime, suppose that households decide to decrease consumption because of, for O A. a reduction in the domestic interest rate O B. a reduction in E O C. a reduction in investment O D. an increase in E O E. none of the above esc F4 F5 F6 F7 F1 F3 a 2 3 4 8 Q W E R T Y U