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According to the Ricardian View of Government Deficits

Question 7

Multiple Choice

According to the Ricardian view of government deficits,


A) any future burden of tax financing should be ignored.
B) government deficits reduce interest rates.
C) taxpayers are less capable of saving when debt finance is used rather than tax finance.
D) the private sector supply of loanable funds will increase in the face of government deficits.

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