If There Is No Ricardo-Barro Effect, an Increase in the Government

question 47

Multiple Choice

If there is no Ricardo-Barro effect, an increase in the government budget deficit

• A)lowers the equilibrium real interest rate.
• B)increases the supply of loanable funds.
• C)decreases the demand for loanable funds.
• D)raises the equilibrium real interest rate.
• E)decreases the supply of loanable funds.

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Definitions:

Strict Product Liability

A legal doctrine that holds sellers or manufacturers liable for defective products regardless of fault or intent, as long as the product was used as intended.

Manufacturer Actions

Refers to the measures or steps taken by a manufacturer in response to product design, production, marketing, and safety concerns.

Defective Condition

A state of imperfection or malfunction in a product that makes it hazardous or unfit for its intended use.

State-Of-The-Art Defense

A legal defense used in product liability cases where the defendant claims the product was using the best technology available at the time of design or manufacture.