According to the Ricardo-Barro Effect, an Increase in the Government

Multiple Choice

According to the Ricardo-Barro effect, an increase in the government budget deficit

A) does not change the real interest rate.
B) lowers the real interest rate.
C) shifts the supply of loanable funds curve leftward.
D) has no effect on the nominal interest rate but does change the real interest rate.
E) shifts the demand for loanable funds curve leftward.