5. Ricardian equivalence may fail to hold if a. the government adopts capital budgeting. b. people are

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5. Ricardian equivalence may fail to hold if

a. the government adopts capital budgeting.

b. people are forward-looking rather than myopic.

c. parents want to leave their children bequests.

d. consumers face binding borrowing constraints.

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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