An Important Reason Why Ricardian Equivalence May Fail Is If

Multiple Choice

An important reason why Ricardian equivalence may fail is if

A) borrowing and lending is done through intermediaries.
B) government debt incurred today may not be paid off until after some current consumers are deceased.
C) state and local governments also engage in debt finance.
D) some consumers are borrowers, while other consumers are lenders.
E) real interest rates start to increase.