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Question
The Ricardian equivalence theorem states that
A) an increase in government spending has no effect on aggregate supply.
B) increases in government spending have a larger impact on real Gross Domestic Product
(GDP) than decreases in taxes.
C) an increase in the government budget deficit created by a current tax cut has no effect on
aggregate demand.
D) an increase in the government budget deficit has no effect on real Gross Domestic Product
(GDP) because it only affects the price index.
Answer
This answer is hidden. It contains 1 characters.
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