Under Ricardian equivalence, if the government reduces current taxes and issues new government bonds, Question 9 options: the supply curve of private savings shifts to the left to keep the real interest rate constant. private savings decreases by an amount equal to the increase in government bonds. the real interest rate increases. the supply curve of private savings shifts to the right and the real interest rate increases. the supply curve of private savings shifts right to keep the real interest rate constant.For a competitive equilibrium in a two-period model, which of the following must be true? Question 10 options: C = Y + S Y = C + G Y = C - T Y = C + I C = Y + T