Real interest rates around the world tend to
A) be equal after adjusting for differences in risk because financial capital seeks the highest possible return.
B) be quite different because no two countries are exactly the same.
C) be equal because trading partners would not do business otherwise.
D) differ because inflation rates differ across countries.
Correct Answer:
Verified
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
Q170: In the global loanable funds market,
A) funds
Q171: A decrease in the government budget deficit
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
Q176: In the absence of the Ricardo-Barro effect,
Q177: If the government has a budget deficit,
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