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In our models we typically assume that Ricardian Equivalence holds. (Provide detailed answers for the following parts) (i) Explain what is Ricardian Equivalence and why

In our models we typically assume that Ricardian Equivalence holds. (Provide detailed answers for the following parts)

(i) Explain what is Ricardian Equivalence and why it might fail in practice.

(ii) Explain why even though Ricardian Equivalence might fail, it is a useful concept in macroeconomics.

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