G
Greg P
Guest
Suppose the government is imposing a debt-financed tax cut.
A. Based on the traditional view, what will happen to:
1. national saving;
2. current consumption;
3. the real interest rate.
B. Based on the view of Ricardian equivalence, what will happen to:
1. national saving;
2. current consumption;
3. the real interest rate.
A. Based on the traditional view, what will happen to:
1. national saving;
2. current consumption;
3. the real interest rate.
B. Based on the view of Ricardian equivalence, what will happen to:
1. national saving;
2. current consumption;
3. the real interest rate.