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16.According to the Ricardian Equivalency theory, a tax cut _____. A.Will tend to have little economic effect. B.Can be an effective policy tool in the
16.According to the Ricardian Equivalency theory, a tax cut _____.
A.Will tend to have little economic effect.
B.Can be an effective policy tool in the midst of an economic downturn
C.Will tend to reduce the magnitude of the tradeoff between inflation and the rate of unemployment.
D.Must be used in conjunction with money supply changes over the course of the business cycle.
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