The Implication of Ricardian Equivalence Is That,if the Government Increases

Multiple Choice

The implication of Ricardian equivalence is that,if the government increases expenditures without increasing taxes,the increase in government expenditures will be:

A) at least partially offset by a reduction in consumer spending.
B) enhanced by an increase in consumer spending.
C) more than offset by a reduction in firm spending.
D) enhanced by the multiplier effect.
E) none of the above