Author Question: If the government runs a budget deficit to fight a war and there is no Ricardo-Barro effect, what is ... (Read 139 times)

Alainaaa8 · **on:** Jun 29, 2018

If the government runs a budget deficit to fight a war and there is no Ricardo-Barro effect, what is an impact of the deficit?

A) The quantity of investment increases.
B) The real interest rate rises.
C) Firms purchase more capital equipment.
D) Animal spirits or irrational exuberance is created.
E) The quantity of private saving decreases.

Question 2

Refer to Scenario 12.1. What is the probability of either Simon, Paula, or both of them trying to rescue the man?

A) 9
B) 49
C) 70
D) 91