Who formulated the theory that government borrowing may function like an increase in taxes in the sense of reducing current consumption and business expenditures?

Question

Quizplus · Accepted Answer

David Ricardo formulated the theory known as Ricardian equivalence, which suggests that government borrowing can have the same economic effect as an increase in taxes, by reducing current consumption and business expenditures.

Who Formulated the Theory That Government Borrowing May Function Like