If there is no Ricardo-Barro effect, a government budget surplus ...

[luminitza]

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.

[bigsis44]

Answer to Question 1

B

Answer to Question 2

C

[luminitza]

Thanks for the timely response, appreciate it

[shailee]

TYSM