Title: Outline And Explain The Ricardian Equivalence Theorem And Assess The Evidence Bearing On It.

Essay Details

Subject: Business
Author: Elsie B
Date: August 1, 2014
Level: University
Grade: A
Length: 5 / 1462
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

As such agents choose to save now so that they have enough when taxes are increased in the future to pay back the borrowing. Due to households holding both assets (government bonds) and liabilities (future tax obligation), this does not represent net wealth for them . Consumers are saving exactly the same amount governments are overspending, and so total demand is unaffected...

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As such agents choose to save now so that they have enough when taxes are increased in the future to pay back the borrowing. Due to households holding both assets (government bonds) and liabilities (future tax obligation), this does not represent net wealth for them . Consumers are saving exactly the same amount governments are overspending, and so total demand is unaffected...

Showed next 250 characters

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