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If There Is No Ricardo-Barro Effect, an Increase in the Government

Question 54

Multiple Choice

If there is no Ricardo-Barro effect, an increase in the government budget surplus


A) decreases private saving.
B) increases private saving.
C) decreases the supply of loanable funds.
D) increases the supply of loanable funds.
E) has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.

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