If Ricardian Equivalence Proposition Is True,a Budget Deficit Resulting from a Tax

Multiple Choice

If Ricardian equivalence proposition is true,a budget deficit resulting from a tax cut will have

A) no effect on government expenditures.
B) no effect on current account because it does not affect national saving.
C) no effect on current account because people expect to pay lower taxes in the future.
D) no effect on current account because people expect to increase their consumption.