If China's government runs a budget surplus and there is no Ricardo- Barro effect, there will be
In the supply of loanable funds, private saving _ _ and investment .
A) an increase; increases; increases
B) a decrease; decrease; increases
C) a decrease; increases; increases
D) an increase; decreases; increases
Correct Answer:
Verified
Q176: Q177: Suppose the market for loanable funds is Q178: Q179: Technological progress that increases the expected profit Q180: If net taxes exceed government expenditures, the Q182: France's government is running a budget deficit. Q183: According to the Ricardo- Barro effect, government Q184: In the absence of the Ricardo- Barro Q185: The Ricardo- Barro effect of a government Q186: The term "crowding out" relates to
A) decreases
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