The Ricardian Equivalence Theorem Implies That a Change in the Timing

question 6

Multiple Choice

The Ricardian Equivalence Theorem implies that a change in the timing of taxes

• A)has a positive effect on both consumption and the real interest rate.
• B)affects consumption negatively and the real interest rate positively.
• C)has a negative effect on both consumption and the real interest rate.
• D)affects consumption positively and the real interest rate negatively.
• E)has no effect on consumption or the real interest rate.

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