Who among the following first argued that in the face of high deficits people save more ........

General Studies (CGL) Indian Economy

Who among the following first argued that in the face of high deficits, people save more?

This questions was previously asked in

SSC CGL 12th April 2022 Shift-1

Amartya Sen

Esther Duflo

Adam Smith

David Ricardo

- Option 1: Amartya Sen

- An Indian economist known for his work on welfare economics and social justice.

- Not linked to the theory of saving in response to deficits.

- Option 2: Esther Duflo

- A French-American economist renowned for her work on development economics.

- Not associated with theories about saving behavior and deficits.

- Option 3: Adam Smith

- A Scottish economist known as the father of modern economics.

- Focused on free markets and the invisible hand, but not this theory.

- Option 4: David Ricardo

- A British classical economist.

- Known for the Ricardian Equivalence theory, which argues that people save more when facing high deficits in anticipation of future taxes.

The correct answer is Option 4: David Ricardo.

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