In the absence of a Ricardo- Barro effect, a government budget deficit the demand for loanable funds, _ the real interest rate, and investment.
A) decreases; increases; increases
B) increases; decreases; crowds out
C) increases; decreases; increases
D) decreases; increases; crowds out
Correct Answer:
Verified
Q190: The Ricardo- Barro effect proposes that government
Q191: If government saving is negative (that is,
Q192: The crowding out effect refers to
A) government
Q193: The idea that a government budget deficit
Q194: The Ricardo- Barro effect holds that
A) a
Q196: If the government begins to run a
Q197: According to the Ricardo- Barro effect,
A) households
Q198: The Ricardo- Barro effects assets that government
A)
Q199: If the Ricardo- Barro effect occurs, an
Q200: According to the Ricardo- Barro effect,
A) financing
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