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Who among the following first argued that in the face of high deficits, people save more?
Amartya Sen
Esther Duflo
Adam Smith
David Ricardo
- Option 1: Amartya Sen - A renowned economist widely known for his work on welfare economics and social choice theory. However, he did not specifically argue about saving behavior in response to high deficits.
- Option 2: Esther Duflo - A Nobel laureate in economics recognized for her work in development economics, specifically using randomized control trials. She has not focused on the topic of saving behavior concerning deficits.
- Option 3: Adam Smith - Known as the father of modern economics, famous for his work "The Wealth of Nations." His theories are more centered around free markets and the invisible hand, rather than individual saving behavior tied to government deficits.
- Option 4: David Ricardo - Known for the Ricardian Equivalence proposition, which suggests that when a government runs a deficit, people will increase their savings in anticipation of future tax increases to repay the deficit.
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