Classical economists think that lump-sum tax changes
a. should be used to smooth business cycles.
b. have no effect because of Ricardian equivalence.
c. have a powerful effect on the economy.
d. affect aggregate demand after a lag.
Answer: B
Classical economists think that lump-sum tax changes
a. should be used to smooth business cycles.
b. have no effect because of Ricardian equivalence.
c. have a powerful effect on the economy.
d. affect aggregate demand after a lag.
Answer: B