To the Extent That the Ricardian Equivalence Theorem Is True

question 15

Multiple Choice

To the extent that the Ricardian equivalence theorem is true, which of the conditions below will hold?

• A)Increases in the government budget deficit will not affect aggregate demand.
• B)Exports will not be considered part of aggregate demand.
• C)Investment spending will not be considered part of aggregate demand.
• D)The long-run aggregate supply curve will not be vertical.