If There Is No Ricardo-Barro Effect, When the Government Runs

question 18

Multiple Choice

If there is no Ricardo-Barro effect, when the government runs a budget surplus, it

• A) competes with businesses for private saving.
• B) shifts the supply of loanable funds curve leftward.
• C) shifts the demand for loanable funds curve leftward.
• D) contributes to financing investment.
• E) shifts the demand for loanable funds curve rightward.

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Definitions:

Standard Costs

Predetermined costs of manufacturing a single unit of product, used for budgeting and performance evaluation.