Other things being equal, all of the following government policies are likely to increase national saving except:
A) decreasing taxes on savings accounts.
B) running a budget deficit.
C) running a budget surplus.
D) retiring part of the national debt.

Question

Quizplus · Accepted Answer

Running a budget deficit typically means the government is spending more than it is earning, which can lead to borrowing from the public. This can crowd out private investment and reduce national saving, unlike the other options which generally encourage saving or reduce debt.

Other Things Being Equal, All of the Following Government Policies