In the global loanable funds market,
A) funds flow into countries with the highest risk-adjusted interest rates and out of countries with the lowest risk-adjusted interest rates.
B) when funds enter a country, a surplus of funds raises the real interest rate.
C) when funds leave a country, a shortage of funds lowers the real interest rate.
D) funds flow into countries with the lowest risk-adjusted interest rates and out of countries with the highest risk-adjusted interest rates.
Correct Answer:
Verified
Q165: The Ricardo-Barro effect holds that
A) a government
Q166: The Ricardo-Barro effect of a government budget
Q167: According to the Ricardo-Barro effect,
A) a government
Q168: If the Ricardo-Barro effect occurs, an in
Q169: The tendency for private saving to increase
Q171: A decrease in the government budget deficit
Q172: Real interest rates around the world tend
Q173: In the absence of a Ricardo-Barro effect,
Q174: Franceʹs government is running a budget deficit.
Q175: The Ricardo-Barro effects assets that government
A) expenditure
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