Multiple Choice
In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds, ________ the real interest rate, and ________ investment.
A) increases; increases; crowds out
B) increases; decreases; increases
C) decreases; increases; increases
D) decreases; increases; crowds out
Correct Answer:
Verified
Correct Answer:
Verified
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