If the Ricardian Equivalence holds - Increasing government purchases would generate a negative demand shock (a¯<0 ), if it is financed by increasing current taxes. Increasing government purchases wouldn't generate a positive demand shock (a¯=0 ), if it is financed by increasing either current taxes or future taxes. Increasing government purchases would generate a positive demand shock (LaTeX: overline{a}>0 ), if it is financed by increasing future taxes. Increasing government purchases would generate a positive demand shock (a¯>0 ), if it is financed by increasing current taxes. Increasing government purchases would generate a negative demand shock (a¯<0 ), if it is financed by increasing future taxes.