Author Question: A prediction of the Ricardo-Barro effect is A) a larger decrease in the real interest rate when ... (Read 67 times)

dalyningkenk

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A prediction of the Ricardo-Barro effect is
 
  A) a larger decrease in the real interest rate when the government runs a budget surplus.
  B) no effect on the real interest rate when the government runs a budget deficit.
  C) a larger decrease in investment when the government runs a budget deficit.
  D) a larger increase in the real interest rate when the government runs a budget deficit.
  E) a larger decrease in investment when the government runs a budget surplus.

Question 2

An economy's resources include
 
  A) raw materials.
  B) factories and machinery.
  C) human knowledge.
  D) all of the above



meganlapinski

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Answer to Question 1

B

Answer to Question 2

D



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