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

[Lisaclaire]

When there is no Ricardo-Barro effect, a government budget surplus ________ the real interest rate because the ________ loanable funds increases.
 
  A) lowers; supply of
  B) lowers; demand for
  C) raises; supply of
  D) raises; demand for
  E) None of the above answers is correct because the real interest rate does not change.

Question 2

Refer to Table 5.1. Andrea should specialize in the production of
 
  A) bracelets.
  B) tiaras.
  C) both products.
  D) neither product.

[isabelt_18]

Answer to Question 1

A

Answer to Question 2

A

[Lisaclaire]

Correct answers!

[isabelt_18]

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