A prediction of the Ricardo-Barro effect is A) a larger ...

[dalyningkenk]

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]

Answer to Question 1

B

Answer to Question 2

D

[dalyningkenk]

Thank you

[meganlapinski]

Happy to help you