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    Macroeconomics Study Set 8
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    Exam 5: Saving and Investment in the Open Economy
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    If the Ricardian Equivalence Is True,a Tax Cut Will
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If the Ricardian Equivalence Is True,a Tax Cut Will

Question 59

Question 59

Multiple Choice

If the Ricardian equivalence is true,a tax cut will


A) increase the current account surplus.
B) decrease the current account surplus.
C) have no effect on the current account.
D) increase national saving.

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