According to the Ricardo-Barro effect
A) the government budget has no effect on the real interest rate.
B) a government budget deficit crowds out private investment.
C) financing government spending with taxes has a smaller effect on private investment than financing through government borrowing.
D) None of the above answers are correct.
Correct Answer:
Verified
Q163: A decrease in disposable income shifts the
A)
Q164: France's government is running a budget deficit.
Q165: If the government has a budget deficit,
Q166: The term "crowding out" relates to the
Q167: If the government's budget deficit increases and
Q169: According to the Ricardo-Barro effect
A) government deficits
Q170: When a government has a budget surplus,
Q171: If net taxes exceed government expenditures, the
Q172: In the absence of a Ricardo-Barro effect,
Q173: The tendency for private saving to increase
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