In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds and ________ investment
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
B
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Causation occurs when:
A) two variables tend to move in opposite directions. B) change in one variable is the reason for the change in another variable. C) two variables tend to move in the same direction. D) change in one variable does not cause any change in another variable.
Which of the following would result in a higher real wage rate and a greater level of employment in the United States?
A) an increase in the supply of capital in the United States B) more liberal U.S. immigration policies C) an increase in the U.S. population D) all of the above
The domestic currency value of the return on a foreign investment when the foreign currency proceeds are sold in the forward market, is defined to be the
A) covered return. B) uncovered return. C) forward return. D) Both B and C.
A monopoly is:
a. a seller of a highly advertised and differentiated product in a market with low barriers to entry in the long run. b. the only seller of a good for which there are no good substitutes in a market with high barriers to entry. c. the only buyer of a unique raw material. d. the producer of a product subsidized by the government.