Explain the ricardian equivalence

Reference no: EM133564456

Assignment:

When the government runs a budget deficit, the amount of debt stock held by the country increases. There is a feeling that a budget deficit represents a burden on future generations who have to face higher taxes to pay off the debt. i. Explain the Ricardian equivalence and what it means in the context of burdens passed on to future generations.

Reference no: EM133564456

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