When Ricardian Equivalence Holds,a Tax Cut

question 187

Multiple Choice

When Ricardian equivalence holds,a tax cut:

• A) increases aggregate demand in the long run.
• B) increases aggregate demand in the short run.
• C) doesn't decrease aggregate demand even in the long run.
• D) doesn't increase aggregate demand even in the short run.

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Definitions:

Multichannel

Refers to the capability of ECG equipment of processing impulses from multiple leads.

Impulses

Sudden strong urges or desires to act without premeditation or reflection.

Electrocardiography

A medical test that measures the electrical activity of the heart to identify various heart conditions.

Stylus

A tool or device designed to input commands or write on a touchscreen display or graphics tablet.