If Government Spending Is Held Constant and Ricardian Equivalence Holds

Multiple Choice

If government spending is held constant and Ricardian equivalence holds,

A) an increase in the government budget deficit is always matched by a reduction in private savings.
B) an increase in government savings is always matched by an increase in the government budget deficit.
C) an increase in government savings is always matched by an equal increase in private savings.
D) an increase in government savings is always matched by an equal reduction in private savings.
E) an increase in government savings is always matched by an increase in the real interest rate.