Multiple Choice
The government of Greece is running a large budget deficit. With no Ricardo-Barro effect, which of the following events will occur?
I. The supply curve of loanable funds will shift leftward.
II. A higher real interest rate crowds out investment.
III. Saving increases.
A) I only
B) II only
C) III only
D) I and II only
E) I, II, and III
Correct Answer:
Verified
Correct Answer:
Verified
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