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According to the Ricardian Equivalence, a tax cut will have expansionary effect on the economy if economic units believe that the budget deficit due to
According to the Ricardian Equivalence, a tax cut will have expansionary effect on the economy if economic units believe that the budget deficit due to the tax cut will be _________
a.paid for by future increase in foreign investment.
b.paid for by future decrease in government spending.
c.paid for by future increase in government borrowing.
d.paid for by future increase in money supply.
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