Question

The assertion that increases in government spending and decreases in taxes are largely offset by increases in savings is called: a. impact lag. b. the new classical critique. c. implementation lag. d. crowding-out. e. savings lag.

Answer 1

a. the new classical critique.

Step-by-step explanation:

The new classical critique occurs when the government increases the spending and this leads to an increase on the people savings in order to help pay for higher taxes.

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