The argument that an increase in aggregate demand, as a result of an increase in government purchases, will be offset by increases in savings (less current consumer spending) for future taxes is called: O the crowding out effect. the Ricardian equivalence theorem the budget deficit effect the budget surplus effect

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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The argument that an increase in aggregate demand, as a result of an increase in government purchases, will be
offset by increases in savings (less current consumer spending) for future taxes is called:
the crowding out effect.
the Ricardian equivalence theorem
O the budget deficit effect
O the budget surplus effect
Transcribed Image Text:The argument that an increase in aggregate demand, as a result of an increase in government purchases, will be offset by increases in savings (less current consumer spending) for future taxes is called: the crowding out effect. the Ricardian equivalence theorem O the budget deficit effect O the budget surplus effect
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