This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The Ricardo-Barro effect is based on the idea that ________ when the government has a budget ... (Read 25 times)

ap345

  • Hero Member
  • *****
  • Posts: 537
on: Jun 29, 2018
The Ricardo-Barro effect is based on the idea that ________ when the government has a budget deficit.
 
  A) investment demand increases because expected future profits increase
  B) people decrease their private saving
  C) investment demand decreases because of the higher real interest rate
  D) people immediately increase their tax payments
  E) people increase their private saving

Question 2

When the Fed buys government securities, banks' reserves ________, the quantity of money ________, and the federal funds rate ________.
 
  A) decrease; increases; falls
  B) increase; increases; falls
  C) increase; decreases; rises
  D) decrease; decreases; rises
  E) increase; increases; rises


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

vkodali

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 29, 2018
Answer to Question 1

E

Answer to Question 2

B


ap345

  • Member
  • Posts: 537
Reply 2 on: Jun 29, 2018
Wow, this really help

juliaf

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Experimental evidence of the effect of allelochemicals on plant production. Experimental evidence of the effect of allelochemicals on plant production.
Prevention programs for school based violence Prevention programs for school based violence
Upper Paleolithic stone tools include blade-based tools as seen here being produced from a blade cor Upper Paleolithic stone tools include blade-based tools as seen here being produced from a blade cor
The Seasonality Effect The Seasonality Effect
The world attempted to deal with Somalia as if it were a real country but painfully learned that Som The world attempted to deal with Somalia as if it were a real country but painfully learned that Som
Vial Washing System - Risk Based Approach Vial Washing System - Risk Based Approach
Video: Glucose anabolism reactions: Glycogenolysis and Gluconeogenesis

For a complete list of videos, visit our video library