Suppose the Government Has a Budget Surplus of $2 Billion

question 100

Multiple Choice

Suppose the government has a budget surplus of $2 billion.If there is no Ricardo-Barro effect,what occurs?

• A)The supply of loanable funds curve shifts leftward,raising the interest rate and decreasing investment.
• B)The supply of loanable funds curve shifts leftward,lowering the interest rate and increasing investment.
• C)The supply of loanable funds curve shifts rightward,lowering the interest rate and increasing investment.
• D)The demand for loanable funds curve shifts leftward,lowering the interest rate and decreasing investment.
• E)The demand for loanable funds curve shifts rightward,raising the interest rate and increasing investment.

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Definitions:

Indexing

The process of creating indexes for documents or systems to organize and enable quick retrieval of information.

Storing

The act of keeping or placing things in a designated location for future use.

Negative/Normal

Terms used in medical testing and diagnostics to denote results that show the absence of a disease, condition, or abnormality.

Positive/Abnormal

Indication of a test result or medical examination finding that deviates from the normal or expected range, possibly signaling a disease or condition.