The Ricardo-Barro Effect Is Based on the Idea That ________

question 31

Multiple Choice

The Ricardo-Barro effect is based on the idea that ________ when the government has a budget deficit.

• A)investment demand decreases because of the higher real interest rate
• B)investment demand increases because expected future profits increase
• C)people increase their private saving
• D)people immediately increase their tax payments
• E)people decrease their private saving

---

Definitions:

Evolutionary Psychological Perspectives

Evolutionary Psychological Perspectives offer explanations for mental and psychological traits as adaptations, that is, as the functional products of natural selection.

Evolutionary Psychology

An approach in both natural and social sciences that analyzes psychological structures through the lens of contemporary evolutionary theories.

Attachment Theory

A psychological, evolutionary, and ethological theory concerning relationships between humans, particularly long-term relationships between parents and children.

Ainsworth's Strange Situation

A procedure developed by Mary Ainsworth in the 1970s to assess patterns of attachment in young children through observations of their behavior when separated and reunited with their caregiver.