According to the Ricardian Equivalence Theory, What Would Happen If

question 7

Multiple Choice

According to the Ricardian equivalence theory, what would happen if the government were to cut taxes without changing its spending?

• A)Public and national saving would fall
• B)Public and national saving would rise
• C)Public and national saving would not change
• D)Private saving would rise, public saving would fall, and national saving would be unaffected

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Definitions:

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Relapse Prevention Treatment

A behavioral therapy designed to teach individuals who are recovering from addictions how to anticipate and cope with the potential for relapse.

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