The Ricardian Equivalence Theorem Is Correct If Two Assumptions Are

Multiple Choice

The Ricardian equivalence theorem is correct if two assumptions are true. These assumptions are that people have:

A) access to savings instruments and recognize the link between deficits and future taxes.
B) no access to savings instruments and recognize the link between deficits and future taxes.
C) access to savings instruments but cannot recognize the link between deficits and future taxes.
D) no access to savings instruments and cannot recognize the link between deficits and taxes.