Which of the following is NOT an argument against the Ricardian equivalence theorem?

Question

Quizplus · Accepted Answer

The lack of central bank independence is not an argument against the Ricardian equivalence theorem. The theorem states that changes in government borrowing do not affect consumption because households anticipate that any increase in government borrowing today will require higher taxes in the future to pay off government debt. This implies that households plan their future consumption accordingly, regardless of the independence of the central bank. B, C, and D are arguments against the Ricardian equivalence theorem because they suggest that households do not behave in a way that is consistent with the theory.

Which of the Following Is NOT an Argument Against the Ricardian