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Ricardian Equivalence Suggests That Government Budget Deficits Generated by Decreases

Question 30

Multiple Choice
Ricardian equivalence suggests that government budget deficits generated by decreases in current taxes

Ricardian equivalence suggests that government budget deficits generated by decreases in current taxes


A) increase the current account surplus.
B) decrease the current account surplus.
C) have no effect on the current account surplus.
D) have unpredictable effects on the current account surplus.
E) increase aggregate consumption and have no effect on the current account surplus.

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