Ricardian Equivalence Refers to

Multiple Choice

Ricardian equivalence refers to

A) the equivalence of taxes and revenues in fiscal policy.
B) the fact the households incorporate inflationary expectations in calculating interest payments.
C) the equivalence of imports and exports in an open economy.
D) the possibility that households may say save now so that they can pay the higher taxes later if there is a tax cut at the present time which drives up future interest payments.
E) none of the above.