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If There Is No Ricardo-Barro Effect, an Increase in the Budget

Question 150

Multiple Choice

If there is no Ricardo-Barro effect, an increase in the budget deficit


A) increases the supply of loanable funds.
B) decreases the amount of investment.
C) decreases the demand for loanable funds.
D) increases the amount of investment.
E) lowers the equilibrium real interest rate.

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