Question

The proposition that an increase in the federal budget deficit caused entirely by a current tax cut has no effect on aggregate demand is called the

Answer 1

The answer is Ricardian Equivalence Theorem. It is an economic theory holding that customers are advancing looking and so adopt the government's budget restraint when making their consumption choices.  People do ahead that a larger shortfall today will mean higher levies in the upcoming andregulate their expenditure as a result.