When there is no Ricardo-Barro effect,a government budget surplus ________ the real interest rate because the ________ loanable funds increases.
A) raises;supply of
B) lowers;supply of
C) lowers;demand for
D) raises;demand for
E) None of the above answers is correct because the real interest rate does not change.
Correct Answer:
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Q61: Since the financial crisis of 2008-09, expected
Q66: Q69: Q141: The Ricardo-Barro effect refers to how _ Q142: According to the Ricardo-Barro effect,an increase in Q143: If there is no Ricardo-Barro effect,an increase Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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