28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. red...

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28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. reduces nationa

30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supp

** V g udlavic TUNUS is uncertain. 32. An increase in the quantity of loanable funds traded means that a. firms are borrowing

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Answer 1

Answer #1

28) a- Reduces the public Saving, but not public Saving.

Explanation- Because budget deficit reduces the public Saving but according to Ricardian Equivalence these public Saving deficit offset by private Saving so that national saving will be unchanged.

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Answer 2

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