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-In the Absence of a Ricardo-Barro Effect, a Government Budget

Question 75

Multiple Choice

-In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds, ________ the real interest rate, and ________ investment. A) increases; increases; crowds out B) decreases; increases; increases C) increases; decreases; crowds out D) increases; decreases; increases
-In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds, ________ the real interest rate, and ________ investment.


A) increases; increases; crowds out
B) decreases; increases; increases
C) increases; decreases; crowds out
D) increases; decreases; increases

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