According to the Ricardo-Barro effect,
A) government deficits raise the real interest rate.
B) taxpayers fail to foresee that government deficits imply higher future taxes.
C) households increase personal saving when governments run budget deficits.
D) government budget deficits increase households' expected future disposable income.
E) a government deficit decreases the supply of loanable funds.
Correct Answer:
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Q119: If the government begins to run a
Q120: The tendency for a government budget deficit
Q121: Use the table below to answer the
Q122: If the Ricardo-Barro effect occurs, _ in
Q123: Table 23.3.5 Q125: A decrease in the government budget deficit Q126: Choose the statement that is incorrect. Q127: According to the Ricardo-Barro effect, Q128: Use the table below to answer the Q129: Table 23.3.3
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A)According to
A)the government budget
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