Principles of Macroeconomics / Unit 15 MAC 1413 short lesson, about 20 seconds
What the Evidence Shows
Captions available
The idea
The offset is real and partial. Studies find private saving rises by roughly thirty cents for each extra dollar of government borrowing, and a study across many countries agreed.
In practice
Saving rose alongside the large deficits of 2008 and 2020, but not those of the mid eighties.
Where people slip
So the theory finds a real effect and overstates its size.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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