Consider an economy that is facing recession. It responds to this with typical easy {expansionary} policy. According to the traditional View of government debtfpolicy, we expect this policy to [salad] V consumption. If Ricardian equivalence holds, then [ Select ] not affect raise lower Consider an economy that is facing recession. It responds to this with typical easy (expansionary) policy. According to the traditional view of government debt/policy, we expect this policy to [ Select ] V consumption. If Ricardian equivalence holds, then [ Select ] [ Select ] the policy will have a bigger positive effect on consumption the real interest rate will increase enough to lower private investment citizens will use adaptive expectations when making predictions about future inflation savings will rise insteadConsider an economy that is facing recession. It responds to this with typical easy (expansionary) policy. According to the traditional View of government debtfpolicy, we expect this policy to [salad] V consumption. If Ricardian equivalence holds, then [ Select ] v _