In relation to the issue of government debt consider the case in which there are two periods: period 1 and future period 2. Select the correct option

a.

According to the traditional view a tax cut in period 1 implies a tax raise in period 2 and if the consumers are forward looking this implies unaltered consumption between period 1 and period 2

b.

According to the Ricardian's view, a tax cut in period 1 implies future a tax raise in period 2 and if the consumers are forward looking this implies unaltered consumption between period 1 and period 2

c.

None of the other options

d.

According to the Ricardian's view, a tax cut in period 1 implies a future tax raise in period 2 and if the consumers are forward looking this implies more consumption in both period 1 and period 2