Multiple Choice
In the late 1990s, the U.S. federal government had a budget surplus. If there is no Ricardo-Barro effect, the budget surplus-------------------- the real interest rate and-------------------- the equilibrium quantity of investment.
A) did not change; did not change
B) lowered; increased
C) raised; increased
D) lowered; decreased
E) raised; decreased
Correct Answer:
Verified
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