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

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Definitions:

Aerobic Cellular Respiration

Aerobic cellular respiration is a metabolic process where cells convert biochemical energy from nutrients into adenosine triphosphate (ATP), using oxygen as the electron acceptor.

Catabolism

The aspect of metabolism in which complex substances are broken down to form simpler substances; catabolic reactions are particularly important in releasing chemical energy stored by the cell. Compare with anabolism.

Anabolism

The aspect of metabolism in which simpler substances are combined to form more complex substances, resulting in the storage of energy, the production of new cell materials, and growth. Compare with catabolism.

Parabronchi

The small, air-filled tubes in the lungs of birds through which air flows for highly efficient gas exchange.