If There Is No Ricardo-Barro Effect, When the Government Runs

question 62

Multiple Choice

If there is no Ricardo-Barro effect, when the government runs a budget surplus, it

• A)shifts the demand for loanable funds curve rightward.
• B)shifts the supply of loanable funds curve leftward.
• C)shifts the demand for loanable funds curve leftward.
• D)contributes to financing investment.
• E)competes with businesses for private saving.

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Definitions:

Expected Frequencies

The predicted counts in each category of a contingency table under the assumption that no association exists between variables.

Fisher's Exact Test

Chi-square statistic used if any of the expected frequencies in a sample of data are less than 5.

Yates' Correction

A statistical procedure applied to the chi-squared test for 2x2 contingency tables to correct for the discontinuity error.

Expected Frequencies

Quantitative descriptions of the number of occurrences of events expected to happen in a scientific experiment based on probability distributions.