In the spring of 2001 President George W. Bush proposed a substantial tax cut, when he argued it would increase aggregate demand. If the Ricardian equivalence proposition holds, is President Bush's analysis correct? Why might the Ricardian equivalence proposition not hold?

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The Answer of In the spring of 2001 President George W. Bush proposed a substantial tax cut, when he argued it would increase aggregate demand. If the Ricardian equivalence proposition holds, is President Bush's analysis correct? Why might the Ricardian equivalence proposition not hold?

In the Spring of 2001 President George W