Multiple Choice
If there is no Ricardo-Barro effect,a government budget deficit increases
A) private savings and raises the real interest rate.
B) investment demand and lowers the real interest rate.
C) the demand for loanable funds and raises the real interest rate.
D) private savings and lowers the real interest rate.
E) the supply of loanable funds and raises the real interest rate.
Correct Answer:
Verified
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