When government saving is negative,
A) investment increases.
B) the real interest rate falls if the crowding- out effect applies.
C) the real interest rate decreases if the Ricardo- Barro effect does not apply.
D) the real interest rate increases if the Ricardo- Barro effect does not apply.
Correct Answer:
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Q166: A decrease in disposable income shifts the
Q167: Q168: Suppose the market for loanable funds is Q169: If the government has a budget deficit Q170: An increase in disposable income shifts the Q172: Q173: If the real interest rate is above Q174: If disposable income increases, people will decide Q175: When a government has a budget surplus, Q176: 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
