According to Ricardian Equivalence theory, a tax cut ________. A) wil

According to Ricardian Equivalence theory, a tax cut ________.

A) will tend to have little economic effect
B) will tend to reduce the magnitude of the trade-off between inflation and the rate of unemployment
C) can be an effective policy tool in the midst of an economic downturn
D) must be used in conjunction with money supply changes over the course of the business cycle

ANSWER

A