When applied to the first President Bush's temporary tax cuts, which were repealed six months after they were implemented, Ricardian equivalence predicts that households did not boost their spending.

Question

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Ricardian equivalence suggests that households will not change their spending habits in response to temporary tax cuts, because they will anticipate that taxes will eventually have to be raised to pay for the resulting increase in government debt. So, in the case of the first President Bush's temporary tax cuts that were repealed six months later, households were not expected to significantly boost their spending.

When Applied to the First President Bush's Temporary Tax Cuts