According to the Ricardo-Barro effect,
A) the government budget has no effect on the real interest rate.
B) a government budget deficit crowds out private investment.
C) financing government spending with taxes has a less severe effect on private investment than financing through government borrowing.
D) a government budget surplus crowds out private investment.
E) a government budget surplus crowds out private saving.
Correct Answer:
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Q122: If the Ricardo-Barro effect occurs, _ in
Q123: Table 23.3.5 Q124: According to the Ricardo-Barro effect, Q125: A decrease in the government budget deficit Q126: Choose the statement that is incorrect. Q128: Use the table below to answer the
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A)government deficits raise
A)According to
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