The Ricardo- Barro effect holds that
A) a government budget deficit crowds out private investment.
B) equal increases in taxes and government expenditures have no effect on equilibrium real GDP.
C) a government budget deficit induces a decrease in saving that magnifies the crowding out effect.
D) government budget deficits have no effect on the real interest rate.
Correct Answer:
Verified
Q189: A government budget deficit the demand for
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
Q195: In the absence of a Ricardo- Barro
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
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