The Ricardo-Barro effect says that a government budget deficit ...

[Mr.Thesaxman]

The Ricardo-Barro effect says that a government budget deficit leads to
 
  A) no change in the real interest rate.
  B) a lower real interest rate.
  C) an increase in the quantity of investment.
  D) a higher real interest rate.
  E) an increase in demand for loanable funds.

Question 2

The natural rate hypothesis asserts that
 
  A) changes in the unemployment rate from changes in the inflation rate are temporary.
  B) changes in the unemployment rate are natural and long-lasting.
  C) when prices change, the inflation rate changes temporarily and then returns to its natural rate.
  D) changes in the natural unemployment rate are only temporary.
  E) price changes occur at a natural rate, near a 6 percent average inflation rate.

[olivia_paige29]

Answer to Question 1

A

Answer to Question 2

A

[Mr.Thesaxman]

Gracias!

[Jossy]

Excellent