If the Ricardo- Barro effect occurs, an in saving finances the government budget deficit and the real interest rate .

Name: If the Ricardo- Barro effect occurs, an in saving finances the government budget deficit and the real interest rate .
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The Ricardo-Barro effect suggests that when the government runs a budget deficit, individuals increase their savings in anticipation of future taxes to pay off the debt. This increased saving offsets the deficit, keeping the real interest rate unchanged.

If the Ricardo- Barro Effect Occurs, an in Saving Finances