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:

Intensive Distribution

A distribution strategy that aims to provide widespread availability of a product by stocking it in as many outlets as possible.

Extensive Distribution

A distribution strategy that places a product in as many outlets as possible.

Distribution Density

The extent to which a product's availability is spread across a geographical area or among a number of retailers.

Intensive Distribution

A distribution strategy where a company sells its products in as many outlets as possible to maximize coverage and sales potential.