Kizspy | Question: 32
(Choose 1 answer)
(15983)Ricardian equivalence argues that when the government cuts taxes and raises its deficit,
A. consumers anticipate that the low tax rates will continue.
B. consumers anticipate that they will face lower taxes later to pay for the resulting government debt.
C. consumers anticipate that they will face higher taxes later to pay for the resulting government debt.
D. consumers anticipate it will affect their future taxes, in general in the direction of lowering future taxes.
E. consumers anticipate that they will higher services from the government.
