The Ricardian equivalence proposition suggests that a government deficit caused by a tax cut
(a) causes inflation.
(b) causes a current account deficit.
(c) raises interest rates.
(d) doesn't affect consumption.
Answer: D
The Ricardian equivalence proposition suggests that a government deficit caused by a tax cut
(a) causes inflation.
(b) causes a current account deficit.
(c) raises interest rates.
(d) doesn't affect consumption.
Answer: D
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