Ricardian view on debt is that the form of government finance is irrelevant

Question

Quizplus · Accepted Answer

Ricardian equivalence theory argues that the form of government finance (whether it is through debt or taxes) does not have any significant impact on the economy in the long run since individuals will adjust their behavior based on their expectations of future taxation or debt repayment. Therefore, the Ricardian view on debt is that the form of government finance is irrelevant.

Ricardian View on Debt Is That the Form of Government