Multiple Choice
If there is no Ricardo-Barro effect, a government budget surplus
A) increases the supply of loanable funds.
B) decreases the supply of loanable funds.
C) increases the demand for loanable funds.
D) decreases the demand loanable funds.
E) has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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