If There Is No Ricardo-Barro Effect, a Government Budget Surplus

question 221

Multiple Choice

If there is no Ricardo-Barro effect, a government budget surplus ________ the total supply of loanable funds and ________ the real interest rate.

• A) increases; raises
• B) increases; lowers
• C) decreases; raises
• D) decreases; lowers
• E) does not change; does not change

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Definitions:

Attachment Styles

Patterns of attachment in interpersonal relationships indicating the nature of bonding between individuals, categorized into secure, avoidant, ambivalent, and disorganized types.

Cultures

The shared patterns of behaviors, beliefs, and values that are transmitted across generations within a community.

Anxious Attachment

A type of emotional bond characterized by anxiety, insecurity, and constant need for reassurance.

Orphanages Romania

Institutions in Romania that house and care for children without parents or guardians, historically noted for harsh conditions.