According to the Ricardian Equivalence Proposition

Multiple Choice

According to the Ricardian equivalence proposition,

A) saving equals investment only at full employment.
B) a decline in the demand for money results in an equivalent increase in the demand for nonmoney assets.
C) the increase in current income from a tax cut is offset by higher taxes in the future to pay off the debt.
D) government spending is the equivalent of investment spending.