The Ricardo-Barro Effect Is Based on the Idea That ________

question 31

Multiple Choice

The Ricardo-Barro effect is based on the idea that ________ when the government has a budget deficit.

• A)investment demand decreases because of the higher real interest rate
• B)investment demand increases because expected future profits increase
• C)people increase their private saving
• D)people immediately increase their tax payments
• E)people decrease their private saving

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Definitions:

Competitive Environment Scan

The process of analyzing and monitoring the business market to identify and understand competitors and industry trends.

Technological Trends

Current and emerging developments in technology that influence various industries and aspects of society.

Resource Capabilities

The assets, skills, and competencies that an organization possesses, enabling it to execute strategies and achieve objectives.

Corporate Strategy

The overarching plan and direction an organization follows with the aim to achieve significant business goals and gain competitive advantage.