Which of the Factors Listed Below Might Cause the Ricardian

question 15

Multiple Choice

Which of the factors listed below might cause the Ricardian equivalence proposition to be violated?

• A)There may be international capital inflows and outflows.
• B)Consumers may not understand that an increase in government borrowing today is likely to lead to higher future taxes.
• C)There may be constraints on the level of government spending.
• D)There may be constraints on the level of government taxation.

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