According to David Ricardo, an increase in government spending without any tax increase will not increase aggregate demand because
A) consumers will increase their consumption proportionately more than Keynesian economists believe they will.
B) consumers will save less than they otherwise would have.
C) consumers will consume less and save more to prepare for increased taxes in the future.
D) the private sector is more likely than the public sector to spend any extra income on national defense.
C
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According to the capture hypothesis of regulation
A) regulation favors producers over consumers because the producers were able to pay off the regulators. B) regulation eventually favors producers over consumers because the producers have more at stake than individual consumers. C) regulation benefits the regulators and the legislators who support the regulation by enabling them to obtain favors from both producers and consumers. D) regulation benefits the consumers over producers because the number of consumers is greater than the number of producers, giving the consumers more political clout.
Describe the changes in population and living standards since 1800. What implications do these changes raise about standards of living today?
What will be an ideal response?