Multiple Choice
If there is no Ricardo-Barro effect, when the government runs a budget surplus, it
A) competes with businesses for private saving.
B) shifts the supply of loanable funds curve leftward.
C) shifts the demand for loanable funds curve leftward.
D) contributes to financing investment.
E) shifts the demand for loanable funds curve rightward.
Correct Answer:
Verified
Correct Answer:
Verified
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