China's government runs a budget surplus. As a result,
A) saving will exceed investment.
B) if there is no Ricardo-Barro effect, the supply of loanable funds curve lies to the right of the private supply of loanable funds curve.
C) the quantity of loanable funds decreases.
D) interest rates should increase.
E) the Ricardo-Barro effect predicts that the real interest rate will increase.
B
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It is not uncommon for people to say something like, "If we can put someone on the moon we should be able to . . . ," followed by the person's favorite project. What response can an economist make to this person?
What will be an ideal response?
If the consumer price index (CPI) this year is 162 and last year it was 170, the inflation rate a. is positive
b. is negative. c. has decreased since last year. d. has increased since last year. e. is the same as last year.