Multiple Choice
Ricardian equivalence is the proposition that
A) government expenditure should only be financed by issuing new debt.
B) it does not matter whether government expenditure is financed by taxes or debt.
C) it does not matter whether government expenditure is financed by creating new money or issuing debt.
D) government expenditure should only be financed by taxes.
Correct Answer:
Verified
Correct Answer:
Verified
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