Describe in one sentence what Ricardian equivalence implies for the government budget and the current account. In another sentence, describe to what extent the equivalence holds in practice.
Describe in one sentence what Ricardian equivalence implies for the government budget and the current account. In another sentence, describe to what extent the equivalence holds in practice.
Chapter20: Exchange Rates And The Macroeconomy
Section: Chapter Questions
Problem 4DQ
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Describe in one sentence what Ricardian equivalence implies for the government budget and the current account. In another sentence, describe to what extent the equivalence holds in practice.
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