According to the Ricardian equivalence theorem, what is the effect of each of the following on output

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According to the Ricardian equivalence theorem, what is the effect of each of the following on output in the economy? Explain your answers.

a. Government pays for an increase in spending by raising taxes.

b. Government pays for an increase in spending by issuing bonds.

c. What is the implication of your answers to a and b?

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Macroeconomics

ISBN: 978-1259663048

10th edition

Authors: David C. Colander

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Question Posted: Dec 05, 2018 06:06 AM

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According to the Ricardian equivalence theorem, what is the effect of each of the following on output

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Macroeconomics

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