Author Question: If the Ricardo-Barro effect is present, a government budget deficit raises the equilibrium real ... (Read 63 times)

big1devin · **on:** Jun 29, 2018

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.