Suppose the Public Increase the Level of Savings in Anticipation

question 24

Multiple Choice

Suppose the public increase the level of savings in anticipation of higher future taxes to service the national debt. This is an example of

• A) Reaganomics.
• B) Smithsonian equivalence.
• C) Ricardian equivalence.
• D) Monetary equivalence.

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Definitions:

Short-Term Memory

A component of memory where small amounts of information can be kept for a short period of time.

Leaky Bucket

A metaphor often used in economics and business to describe a process where resources are lost or wasted.

Critical Thinking

The process of objectively analyzing and evaluating an issue to form a judgment.

Memory

The faculty by which the mind stores and remembers information.