Refer to the table below to answer the following question.
Table 7.3.5
Table 7.3.5 shows an economy's demand for loanable funds schedule and supply of loanable funds schedule when the government's budget is balanced.If the government budget surplus becomes $2.0 trillion, the real interest rate is percent a year, the quantity of investment is trillion, and the quantity of private saving is _ trillion.
A) 6; $7.5; $5.5 B) 8; $6.5; $6.5 C) 10; $7.5; $5.5 D) 10; $5.5; $7.5 E) 6; $7.5; $7.5
Answer: A
-The government of Greece is running a large budget deficit.With no Ricardo- Barro effect, which of the following events occurs? I.The supply curve of loanable funds shifts leftward.
II.A higher real interest rate crowds out investment.
III.Saving increases.
A) I only
B) II only
C) III only
D) II and III only
E) I, II, and III
Correct Answer:
Verified
Q120: If China's government increases its budget surplus,
Q121: Refer to the figure below to answer
Q122: Use the table below to answer the
Q123: Refer to the table below to answer
Q124: A government budget surplus occurs, which _
Q126: Refer to the table below to answer
Q127: If the Ricardo- Barro effect occurs, _
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
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