The Ricardo- Barro effect proposes that government budget deficits
A) increase investment.
B) do not affect the real interest rate.
C) lower the real interest rate.
D) Both answers B and C are correct.
Correct Answer:
Verified
Q185: The Ricardo- Barro effect of a government
Q186: The term "crowding out" relates to
A) decreases
Q187: The tendency for private saving to increase
Q188: The Ricardo- Barro effect proposes that
A) people
Q189: A government budget deficit the demand for
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
Q195: In the absence of a Ricardo- Barro
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