In the market for loanable funds, a larger government surplus leads to
A) a lower real interest rate, and decreased investment.
B) a higher real interest rate, and decreased investment.
C) no effect on the real interest rate or investment.
D) a lower real interest rate, and increased investment.
E) a higher real interest rate, and increased investment.
Correct Answer:
Verified
Q128: According to the Ricardo- Barro effect,
A)financing government
Q129: Refer to the figure below to answer
Q130: According to the Ricardo- Barro effect, government
Q131: A decrease in the government budget deficit
Q132: Choose the statement that is incorrect.
A)Most economists
Q134: Refer to the table below to answer
Q135: The Ricardo- Barro effect holds that
A)a government
Q136: Refer to the figure below to answer
Q137: Refer to the figure below to answer
Q138: Consider Table 7.3.7.If the government's budget becomes
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