Multiple Choice
Any policy designed to increase business saving will most likely
A) not affect national saving since personal saving will decline proportionally
B) not affect national saving since the resulting budget deficit will reduce government saving
C) increase national saving since personal saving will decrease by less than the increase in business saving
D) reduce national saving since personal saving will decrease by more than the increase in business saving
E) reduce national saving due to the decline in personal and government saving
Correct Answer:

Verified
Correct Answer:
Verified
Q29: There is empirical evidence for the fact
Q30: According to the permanent-income theory, if individuals
Q31: The sensitivity of current consumption to changes
Q32: According to the permanent-income theory<br>A)increases in current
Q33: When the aggregate consumption function is defined
Q35: Buffer-stock saving<br>A)is consistent with the life-cycle hypothesis
Q36: If you are age 20, have no
Q37: The theory of consumption of durable goods<br>A)is
Q38: The life-cycle theory of consumption was first
Q39: When examining the impact of changes in