One Objection to the Notion of Ricardian Equivalence Is That

question 71

Multiple Choice

One objection to the notion of Ricardian Equivalence is that ________.

• A)households will recognize that a tax cut today will only lead to a tax increase in the future
• B)individuals are short-sighted in their spending decisions
• C)borrowing constraints have largely been eliminated due to financial innovation in the provisioning of consumer credit
• D)households typically save most of the monies received from a tax cut

---

Definitions:

Affiliation

The sense of connection or association with a group or organization, often resulting in a feeling of belongingness.

Achievement

The act of accomplishing a goal or attaining a high level of performance through effort or skill.

Esteem

A regard for or a sense of worth or importance of someone or something.

Bariatric Surgery

A group of surgical procedures aimed at weight loss by modifying the stomach and/or intestines.