The Ricardo-Barro effect holds that
A) equal increases in taxes and government expenditures have no effect on equilibrium real GDP.
B) a government budget deficit has no effect on the real interest rate.
C) a government budget deficit crowds out private investment.
D) a government budget deficit induces a decrease in saving that magnifies the crowding out effect.
E) none of the above.
Correct Answer:
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Q119: According to the Ricardo-Barro effect,
A)the government budget
Q120: The tendency for a government budget deficit
Q121: If a country has a shortage of
Q122: If the Ricardo-Barro effect occurs, _ in
Q122: A very small country is a net
Q124: The real interest rate is _ in
Q125: A very small country is a net
Q126: Choose the statement that is incorrect.
A)According to
Q128: Use the table below to answer the
Q132: The Ricardo-Barro effect of a government budget
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