Author Question: If there is no Ricardo-Barro effect, a government budget surplus ________ the supply of loanable ... (Read 73 times)

luminitza · **on:** Jun 29, 2018

If there is no Ricardo-Barro effect, a government budget surplus ________ the supply of loanable funds and ________ equilibrium investment.

A) decreases; increases
B) increases; increases
C) increases; decreases
D) does not change; does not change
E) decreases; decreases

Question 2

Currently the Fed targets

A) the inflation rate
B) the exchange rate.
C) the federal funds rate.
D) both the monetary base and the federal funds rate simultaneously.
E) the price level.