The Ricardian Equivalence Argues That Deficits Caused by Tax Cuts

The Ricardian equivalence argues that deficits caused by tax cuts should not cause interest rates to climb because

A) consumption does not respond in anticipation of a counterbalancing increase in taxes sometime in the future.
B) investment declines in anticipation of a counterbalancing increase in corporate taxes sometime in the future.
C) investment does not respond because of an impression that the tax cut is permanent.
D) any increase in consumption is matched and cancelled by a corresponding increase in net exports.
E) any increase in the interest rate is negated by an adjustment in the foreign exchange rate.