Multiple Choice
In the late 1990s, the U.S.federal government had a budget surplus.If there is no Ricardo-Barro effect, these surpluses ________ the supply of loanable funds and ________ the real interest rate.
A) increased; raised
B) increased; lowered
C) decreased; raised
D) decreased; lowered
E) did not change; did not change
Correct Answer:
Verified
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