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

Question 47

Multiple Choice

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


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

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