In the market for loanable funds, a larger government surplus leads to
A) a higher real interest rate, and increased investment.
B) a higher real interest rate, and decreased investment.
C) a lower real interest rate, and increased investment.
D) a lower real interest rate, and decreased investment.
E) no effect on the real interest rate or investment.
Correct Answer:
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Q131: Use the table below to answer the
Q132: The Ricardo-Barro effect of a government budget
Q133: Table 23.3.2 Q134: Table 23.3.4 Q135: A government budget surplus occurs, which _ Q137: Use the table below to answer the Q138: According to the Ricardo-Barro effect, government deficits Q139: If the Ricardo-Barro effect occurs, a government Q140: The Ricardo-Barro effect holds that Q141: Use the table below to answer the
A)lead
A)equal increases in
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