Suppose the government is imposing a debt-financed tax, Ask an Expert

Economics

Suppose the government is imposing a debt-financed tax cut.

A. Based on the traditional view, what will happen to:

national saving;

current consumption;

the real interest rate.

B. Based on the view of Ricardian equivalence, what will happen to:

national saving;

current consumption;

the real interest rate.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91676090

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