If There Is No Ricardo-Barro Effect, a Government Budget Surplus

question 67

Multiple Choice

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

• A)decreases the demand loanable funds.
• B)increases the supply of loanable funds.
• C)decreases the supply of loanable funds.
• D)increases the demand for loanable funds.
• E)has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.

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