If there is no Ricardo-Barro effect, a government budget surplus_{--------------------} the supply of loanable funds and_{--------------------} equilibrium investment.

Question

Quizplus · Accepted Answer

Without the Ricardo-Barro effect, a government budget surplus increases the supply of loanable funds, which typically leads to a decrease in interest rates and an increase in equilibrium investment.

If There Is No Ricardo-Barro Effect, a Government Budget Surplus--------------------

If There Is No Ricardo-Barro Effect, a Government Budget Surplus_{--------------------}