The implication of Ricardian equivalence is that if the government increases expenditures without increasing taxes, the increase in government expenditures will be: a) enhance by an increase in consumer spending. b) enhanced by the multiplier effect c) offset by a reduction in consumer spending. d) instantly offset by automatic stabilizers. Government spending designed to mitigate short-run fluctuations by passing legislations is called? a) automatic stabilization b) discretionary spending c) unemployment insurance d) monetary policy