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

question 238

Multiple Choice

If there is no Ricardo-Barro effect, a government budget surplus ________ the supply of loanable funds and ________ equilibrium investment.

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

---

Definitions:

Proof of the Report

Evidence or verification that a report is accurate or genuine.

Protected Forest

A protected forest is an area of woodlands legally safeguarded to preserve biodiversity, natural resources, and environmental values.

Informative Report

A report that provides information.

Encroached Land

Land that is illegally occupied or used by someone else without the owner's permission.