If the government runs a budget deficit to fight a war and there ...

[Alainaaa8]

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

[stillxalice]

Answer to Question 1

B

Answer to Question 2

D

[Alainaaa8]

Gracias!

[samiel-sayed]

Thanks for the timely response, appreciate it