If there is no Ricardo-Barro effect, when the government runs a budget surplus, it
A) contributes to financing investment.
B) competes with businesses for private saving.
C) shifts the demand for loanable funds curve rightward.
D) shifts the supply of loanable funds curve leftward.
E) shifts the demand for loanable funds curve leftward.
A
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The above figure shows the payoff matrix for two firms, A and B, selecting an advertising budget. The firms must choose between a high advertising budget and a low advertising budget. A Nash equilibrium is that
A) firm A selects a high advertising budget and firm B selects a low advertising budget. B) firm A selects a low advertising budget and firm B selects a high advertising budget. C) both firms select a high advertising budget. D) both firms select a low advertising budget.
Which one of the following is an example of a positive statement?
A) Farmers need some type of government aid. B) State governments should provide economic assistance to farmers. C) The federal government should provide economic assistance to farmers. D) The amount of financial assistance given to farmers is higher this year than it was 10 years ago.