With is no Ricardo-Barro effect, a government budget surplus ________ the real interest rate because the ________ loanable funds increases.
A) raises; demand for
B) lowers; demand for
C) raises; supply of
D) lowers; supply of
E) None of the above answers are correct because the real interest rate does not change.
Correct Answer:
Verified
Q198: The crowding-out effect implies that a government
Q199: Q200: Q201: 10.4 Chapter Figures Q202: A prediction of the Ricardo-Barro effect is Q204: With no Ricardo-Barro effect, a government budget Q205: If there is no Ricardo-Barro effect, a Q206: The Ricardo-Barro effect says that a government Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)
