Multiple Choice
What does the Ricardo-Barro Effect predict?
A) The level of saving in a developed economy will be very low.
B) There is no way to explain animal spirits or irrational exuberance.
C) Private saving will offset the impact of government borrowing.
D) Government budget deficits crowd out private investment.
E) Net investment and gross investment will be equal.
Correct Answer:
Verified
Correct Answer:
Verified
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