The balancing of marginal costs and marginal benefits to obtain an efficient outcome is known as the equimarginal principle.

With no Ricardo-Barro effect, a government budget surplus

A) decreases the demand for loanable funds and increases the real interest rate. B) increases the demand for loanable funds and lowers the real interest rate. C) increases the supply of loanable funds and lowers the real interest rate. D) increases the demand for loanable funds and raises the real interest rate. E) decreases the supply of loanable funds and lowers the real interest rate.

Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. The federal government marketing order that helped reduce asymmetric information about kiwifruit led to:

A. a decrease in the spread between the price of New Zealand and U.S. kiwifruit. B. lower quality kiwifruit sales. C. more kiwifruit imports. D. lower kiwifruit sales.