If the Ricardo-Barro effect is present, a government budget ...

[big1devin]

If the Ricardo-Barro effect is present, a government budget deficit raises the equilibrium real interest rate by ________ and decreases the equilibrium quantity of investment by ________ than if the Ricardo-Barro effect is absent.
 
  A) more; more
  B) more; less
  C) less; more
  D) less; less

Question 2

If capital per worker rises
 
  A) labor productivity decreases.
  B) no technological progress occurs.
  C) labor productivity increases.
  D) firms respond by raising their prices.

[potomatos]

Answer to Question 1

D

Answer to Question 2

C

[big1devin]

Thanks for the timely response, appreciate it

[AmberC1996]

Gracias!