Multiple Choice
If there is no Ricardo-Barro effect, an increase in the government budget surplus
A) increases the supply of loanable funds.
B) decreases the supply of loanable funds.
C) increases private saving.
D) decreases private saving.
E) has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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