If the government has a budget deficit and the Ricardo- Barro effect does not apply,

Name: If the government has a budget deficit and the Ricardo- Barro effect does not apply,
Brand: Quizplus
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When the government has a budget deficit and the Ricardo-Barro effect does not apply, the government borrows more, leading to higher demand for loanable funds. This increases the real interest rate, which in turn decreases investment.

If the Government Has a Budget Deficit and the Ricardo-