The Ricardian Equivalence Theorem States That

The Ricardian equivalence theorem states that

A) an increase in government spending has no effect on aggregate supply.
B) increases in government spending have a larger impact on real national income than decreases in taxes.
C) an increase in the government budget deficit created by a current tax cut has no effect on aggregate demand.
D) an increase in the government budget deficit has no effect on real national income because it only affects the price index.