Choose all of the correct statements.
a If the Ricardian Equivalence holds, the current account is not affected by changes in the schedule of taxes and bond issuance of the country, while the trade balance is affected by them.
b Even if the Ricardian Equivalence holds, changes in the government's expenditures affect the current account balance, while the trade balance is not affected by them.
c The Ricardian Equivalence holds because the change in the private saving exactly offsets the change in the government’s saving.
d If the Ricardian Equivalence holds, both the current account balance and the trade balance are not affected by changes in the schedule of taxes and bond issuance of the country.

Q&A Education