If there is no Ricardo-Barro effect, a government budget deficit increases

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

C

Economics

You might also like to view...

Which of the following countries does not employ a value-added tax at the national level?

a. France b. German c. United States d. Canada

Economics

"Crowding in" refers to federal government deficits:

a. used for public infrastructure that will offset any decline in business investment. b. which reduce private business and consumption spending. c. which reduce future rates of economic growth. d. all of these.

Economics