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According to the Ricardian equivalence proposition, a temporary government budget deficit created by cutting taxes Select one: a.will cause desired consumption to increase. b.will cause
According to the Ricardian equivalence proposition, a temporary government budget deficit created by cutting taxes
Select one:
a.will cause desired consumption to increase.
b.will cause future taxes to increase but will have no real economic effects.
c.will have the same real economic effects as a budget deficit created by raising government spending.
d.would have the same real effects whether or not consumers expect future taxes to change.
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