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What is ricardian equivalence

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Reference no: EM132405744

1. Why is the government purchase multiplier greater than the tax multiplier? Are there any arguments that suggest that the government purchase multiplier might be lower than the tax multiplier?

2. What is Ricardian equivalence? What objections to Ricardian equivalence have been raised?

3. What arguments should be considered in assessing the burden that government debt imposes on future generations?

Reference no: EM132405744

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