Skip to content
free
K
1
2
practice
Home
Math
English
Science
Social Studies
Contact
Language
English
Español
Sign In
/
Social Studies
/
Economics & Financial Literacy
/
Fiscal Policy, Taxation, Government Spending, and Multipliers
Worksheet
Grade Level
Economics & Financial Literacy
12.36 Fiscal Policy, Taxation, Government Spending, and Multipliers
0%
Skill Level
🔴 Hard
00:00
Progress to Next Level
25% to Medium
Easy
Medium
Hard
Mastery
100%
Under the Ricardian-equivalence argument, why might a debt-financed tax cut have a smaller effect on consumption?
A
Government debt is not related to future taxes in any model
B
A tax cut directly reduces disposable income
C
Households must spend the entire tax cut immediately
D
Households may save the tax cut because they expect future taxes to repay the debt
Submit Answer
