If Ricardian Equivalence theory holds, then any change in budget deficits or budget surpluses would be completely offset by which of the following?
A. A corresponding change in private saving.
B. A change in currency exchange rates.
C. A sustained pattern of trade imbalances.
D. A dependence on inflows of capital.
Answers: 1
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If Ricardian Equivalence theory holds, then any change in budget deficits or budget surpluses would...
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