According to the Ricardo-Barro Effect

question 52

Multiple Choice

According to the Ricardo-Barro effect,

• A)government deficits raise the real interest rate.
• B)taxpayers fail to foresee that government deficits imply higher future taxes.
• C)households increase personal saving when governments run budget deficits.
• D)government budget deficits increase households' expected future disposable income.
• E)a government deficit decreases the supply of loanable funds.

---

Definitions:

Immigrating

The act of moving to a new country or region with the intention of settling and living there, often driven by factors such as employment, family, or refuge.

Discriminate

To unjustly differentiate or distinguish between people based on race, age, sex, or other prejudicial status.

Prejudiced

Having preconceived opinions or judgments about people or groups without sufficient knowledge or experience.

Psychological Theories

The broad range of concepts and frameworks within psychology that seek to explain the behavior, thoughts, emotions, and interactions of individuals.