The experience of most Western countries in the 1980s:
A) clearly contradicted the Ricardian equivalence view because national saving was very low.
B) clearly supported the Ricardian equivalence view,for people saved little only because they were optimistic,as confirmed by the stock market.
C) will provide a clear answer on the validity of Ricardian equivalence as soon as economists are able to analyze it with their computers.
D) may be used to argue both in favour of and against the Ricardian equivalence view of the tax cuts.
Correct Answer:
Verified
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