Supposing Ricardian equivalence holds, an increase in current taxes
A) increases current aggregate consumption.
B) reduces current aggregate consumption.
C) reduces current saving.
D) increases government spending.
E) reduces future aggregate consumption.

Question

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The Answer of Supposing Ricardian equivalence holds, an increase in current taxes
A) increases current aggregate consumption.
B) reduces current aggregate consumption.
C) reduces current saving.
D) increases government spending.
E) reduces future aggregate consumption.

Supposing Ricardian Equivalence Holds, an Increase in Current Taxes