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Author Question: If the Ricardo-Barro effect is present, a government budget deficit raises the equilibrium real ... (Read 125 times)

big1devin

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on: Jun 29, 2018
If the Ricardo-Barro effect is present, a government budget deficit raises the equilibrium real interest rate by ________ and decreases the equilibrium quantity of investment by ________ than if the Ricardo-Barro effect is absent.
 
  A) more; more
  B) more; less
  C) less; more
  D) less; less

Question 2

If capital per worker rises
 
  A) labor productivity decreases.
  B) no technological progress occurs.
  C) labor productivity increases.
  D) firms respond by raising their prices.


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potomatos

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

C


big1devin

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Reply 2 on: Jun 29, 2018
Excellent

tranoy

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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