Multiple Choice
The Ricardo-Barro effect holds that
A) equal increases in taxes and government expenditures have no effect on equilibrium real GDP.
B) a government budget deficit has no effect on the real interest rate.
C) a government budget deficit crowds out private investment.
D) a government budget deficit induces a decrease in saving that magnifies the crowding out effect.
E) a government budget deficit increases the real interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q31: If the Ricardo-Barro effect occurs, _ in
Q32: A fall in the real interest rate<br>A)shifts
Q33: If households' disposable income decreases, then<br>A)households' saving
Q34: As the _ rises, the quantity of
Q35: Southton has investment of $100, private saving
Q37: Table 23.2.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3019/.jpg" alt="Table 23.2.1
Q38: As the _ interest rate rises _.<br>A)nominal;
Q39: If disposable income increases, people _ saving
Q40: When the inflation rate is zero, the<br>A)real
Q41: Approximately, the real interest rate _ the