The real interest rate is ________ in Canada compared to Zimbabwe because ________.
A) lower;there is a lower risk premium in Canada
B) higher;more firms want to borrow financial capital in Canada than in Zimbabwe
C) lower;Canada is a net borrower
D) higher;Zimbabwe is a net borrower
E) higher;the supply of loanable funds is greater in Canada
Correct Answer:
Verified
Q119: According to the Ricardo-Barro effect,
A)the government budget
Q120: The Ricardo-Barro effect holds that
A)equal increases in
Q121: If a country has a shortage of
Q122: A very small country is a net
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