The Government of Greece Is Running a Large Budget Deficit

question 13

Multiple Choice

The government of Greece is running a large budget deficit. With no Ricardo-Barro effect, which of the following events will occur?
I. The supply curve of loanable funds will shift leftward.
II. A higher real interest rate crowds out investment.
III. Saving increases.

• A)I only
• B)II only
• C)III only
• D)I and II only
• E)I, II, and III

---

Definitions:

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits, such as anorexia or bulimia.

Obsessed With Weight

An unhealthy focus on one's body weight, often leading to eating disorders or mental health issues.

Dieting

The practice of eating food in a regulated and supervised fashion to decrease, maintain, or increase body weight.

Secure Attachment

A type of attachment characterized by feelings of safety and security in relationships, often resulting from consistent and responsive caregiving in early childhood.