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Recall our discussion of Ricardian equivalence, which describes how particularly far- sighted individuals respond to tax changes. In class, we talked about how people react

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Recall our discussion of Ricardian equivalence, which describes how particularly far- sighted individuals respond to tax changes. In class, we talked about how people react to tax cuts under Ricardian equivalence, but let's consider the opposite. If we assume Ricardian equivalence is true, how would people react if the government raises taxes? Edit View Insert Format Tools Table 12pt V Paragraph B I U A & TV|

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