Refer to the scenario above. What can Edward do to induce the housekeeper to work regularly?

Discuss why a budget deficit results in a different real interest rate under the Ricardo-Barro effect than under the crowding-out effect

What will be an ideal response?

Which of the following conclusions is not supported by the Three-Sector-Model?

a. A decrease in borrowing causes the real risk-free interest rate to fall and equilibrium quantity of real loanable funds to fall. b. An increase in the supply of a nation's real loanable funds reduces the real risk-free interest rate and increases the equilibrium quantity of real loanable funds. c. An increase in a nation's demand for goods and services within the intermediate range results in an increase in the real GDP and a higher GDP Price Index. d. An increase in the value of a nation's currency encourages domestic exports and discourages imports. e. All of the above are supported by the Three-Sector Model.