Multiple Choice
If there is no Ricardo-Barro effect, an increase in the government budget surplus will
A) decrease the supply of loanable funds.
B) raise the real interest rate.
C) lower the real interest rate.
D) decrease the demand for loanable funds.
E) not change 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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