Is it possible that government promises might have a displacement effect along with government debt? Thus, if

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Is it possible that government promises might have a displacement effect along with government debt? Thus, if the government were to promise large future social security benefits to workers, would workers feel richer? Might they reduce saving as a result? Could the capital stock end up smaller? Illustrate using Figure 31-2.
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Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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