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

question 52

Multiple Choice

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

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

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Definitions:

Whistle-blowers

Individuals who expose wrongful, unethical, or illegal activities occurring within an organization to the public or to those in positions of authority.

Considerable Retaliation

A significant and often disproportionate response to an action or threat perceived as harmful or unjust.

Goal Challenge

The degree of difficulty and the effort required to achieve a specific objective or target, impacting motivation and performance.

Counterproductive Behaviour

Actions by employees that go against the legitimate interests of an organization, potentially harming its well-being or functioning.