The Argument That an Increase in Aggregate Demand, as a Result

Multiple Choice

The argument that an increase in aggregate demand, as a result of an increase in government purchases, will be offset by increases in savings (less current consumer spending) for future taxes is called:

A) ​the crowding out effect
B) ​the Ricardian equivalence theorem
C) ​the budget deficit effect
D) ​the budget surplus effect