The Lesson to Be Learned from the Ricardian Equivalence Proposition

Multiple Choice

The lesson to be learned from the Ricardian equivalence proposition is that

A) only government budget deficits generated by tax changes affect the macroeconomy.
B) government budget deficits do not affect the macroeconomy.
C) it is impossible for the government to actually reduce taxes.
D) the basic measure of the cost of government is the real resources that the government uses.