Currently the government has a balanced budget. It decides to follow an expansionary fiscal policy of reducing taxes by​ $100 billion. Which of the following statements bests describes the Ricardian Equivalence Theorem under these​ conditions?

A. Households save more than anticipated.
B. Congress decreases government spending by an equivalent amount.
C. People figure that future generations will bear the burden of the tax increase and they themselves are not affected by the tax change.
D. Consumption rises and causes the aggregate supply to increase by the full effect of the multiplier.