National savings is likely to decline for all of the following reasons EXCEPT
A)increase in expected future income.
B)increase in government purchases.
C)increased consumer pessimism.
D)tax cuts (assuming Ricardian equivalence does not hold).

Question

Quizplus · Accepted Answer

Increased consumer pessimism typically leads to higher savings as consumers become more cautious about future economic conditions.

National Savings Is Likely to Decline for All of the Following