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If the Ricardo-Barro Effect Occurs, ________ in Private Saving Finances

Question 31

Multiple Choice

If the Ricardo-Barro effect occurs, ________ in private saving finances the government budget deficit, and the real interest rate ________.


A) an increase; remains the same
B) a decrease; increases
C) an increase; falls
D) a decrease; remains the same
E) an increase; rises

Correct Answer:

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