Economics · Economic Theories
The proposition that 'families increase savings to offset the increased government dissaving (debt-financed spending)' is associated with which of the following economic theories?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Ricardian Equivalence✓
- 2Absolute Income Hypothesis
- 3Amemiya's Instrumental Variables
- 4Keynesian Consumption Theory
Correct answer
Ricardian Equivalence
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