Multiple Choice
If there is no Ricardo-Barro effect, a government budget surplus
A) decreases the demand loanable funds.
B) increases the supply of loanable funds.
C) decreases the supply of loanable funds.
D) increases the demand for loanable funds.
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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