India's government runs a government budget surplus. If there is no Ricardo-Barro effect, the surplus means that the
A) private supply of loanable funds curve lies to the left of the supply of loanable funds curve.
B) private demand for loanable funds curve lies to the left of the demand for loanable funds curve.
C) private supply of loanable funds curve is the same as the supply of loanable funds curve.
D) private supply of loanable funds curve lies to the right of the supply of loanable funds curve.
E) None of the above answers is correct.
Question 2
Changes in which of the following shift the short-run Phillips curve?
i. changes in the natural unemployment rate
ii. changes in the expected inflation rate
iii. changes in the inflation rate
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
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