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    Exam 4: Consumption, saving, and Investment
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    The Ricardian Equivalence Proposition Suggests That a Government Deficit Caused
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The Ricardian Equivalence Proposition Suggests That a Government Deficit Caused

Question 7

Question 7

Multiple Choice

The Ricardian equivalence proposition suggests that a government deficit caused by a tax cut


A) causes inflation.
B) causes a current account deficit.
C) raises interest rates.
D) doesn't affect consumption.

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