National Savings Is Likely to Decline for All of the Following

question 61

Multiple Choice

National savings is likely to decline for all of the following reasons EXCEPT

• A)increase in expected future income.
• B)increase in government purchases.
• C)increased consumer pessimism.
• D)tax cuts (assuming Ricardian equivalence does not hold).

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Definitions:

Retrieval Cues

Stimuli that help you recall or access memories, often by triggering an associated memory.

Emotional States

The complex feelings that result from the body's reaction to a situation, affecting mood and behavior.

Primacy Effect

Refers to the tendency to remember information at the beginning of a list better than information in the middle or at the end.

Repression

A defense mechanism where unwanted or disturbing thoughts, memories, or desires are unconsciously pushed out of conscious awareness.