If the Ricardo-Barro Effect Occurs, ________ in Private Saving Finances

question 31

Multiple Choice

If the Ricardo-Barro effect occurs, ________ in private saving finances the government budget deficit, and the real interest rate ________.

• A)an increase; remains the same
• B)a decrease; increases
• C)an increase; falls
• D)a decrease; remains the same
• E)an increase; rises

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Definitions:

Carrier

A business that undertakes to transport persons, goods, or both.

Right to Inspect

The authorized capacity to examine or review something for accuracy, quality, or condition.

Goods

Items that are manufactured or produced for sale.

Shipped

The act of sending or transporting goods from one place to another, typically referring to the movement of merchandise after a sale.