China's government runs a budget surplus.As a result,
A) if there is no Ricardo-Barro effect, the supply of loanable funds curve lies to the right of the private supply of loanable funds curve.
B) interest rates should increase.
C) the Ricardo-Barro effect predicts that the real interest rate will increase.
D) the quantity of loanable funds decreases.
E) saving will exceed investment.
Correct Answer:
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