Ricardian equivalence is the argument that government spending financed by going into debt will have no impact on the economy.

Name: Ricardian equivalence is the argument that government spending financed by going into debt will have no impact on the economy.
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Ricardian equivalence suggests that when a government finances spending through debt, individuals anticipate future taxes to repay the debt and thus save more, offsetting the impact on overall demand.

Ricardian Equivalence Is the Argument That Government Spending Financed by Going