Suppose in the country of Miltonia, Ricardian equivalence is 100% true. A- If Miltonian tax rates fall, what happens to
Posted: Wed Apr 27, 2022 1:12 pm
Suppose in the country of Miltonia, Ricardian equivalence is
100% true.
A- If Miltonian tax rates fall, what happens to spending? Do
people spend their tax cuts, save the money, or spend some and save
the rest?
B- If there is a rise in Miltonian taxes, what happens to
spending? Do people start spending less, or do they dissave/borrow
more to keep spending at the same rate?
100% true.
A- If Miltonian tax rates fall, what happens to spending? Do
people spend their tax cuts, save the money, or spend some and save
the rest?
B- If there is a rise in Miltonian taxes, what happens to
spending? Do people start spending less, or do they dissave/borrow
more to keep spending at the same rate?