Ricardian Equivalence theory is based on the view that ________. A) t

Ricardian Equivalence theory is based on the view that ________.

A) the impact of a tax cut is felt primarily on domestic consumption spending
B) households tend to take future events into account when engaging in economic decision-making
C) the price of a commodity is negatively related to the quantity of that good demanded
D) a trade-off exists between the use of monetary and fiscal policy in influencing the level of income

ANSWER

B