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With No Ricardo-Barro Effect, a Government Budget Surplus

Question 9

Multiple Choice

With no Ricardo-Barro effect, a government budget surplus


A) increases the supply of loanable funds.
B) increases the demand for loanable funds.
C) decreases the supply of loanable funds.
D) decreases the demand for loanable funds.
E) has no effect on either the supply or the demand for loanable funds.

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