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The concept of Ricardian equivalence suggests that: a ) Consumers respond to changes in fiscal policy by altering their saving behavior b ) Tax cuts
The concept of "Ricardian equivalence" suggests that:
a Consumers respond to changes in fiscal policy by altering their saving behavior
b Tax cuts are more effective than increases in government spending in stimulating aggregate demand
c Budget deficits have no effect on aggregate demand
d Government debt has no impact on household consumption decisions
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