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.
A
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The current account includes
A) the value of trade in merchandise. B) services. C) unilateral transfers. D) All of the above.
It has been claimed that foreign governments have attempted to influence votes in the U.S. that would promote policies of protectionism within the U.S
On the surface this appears to be totally illogical and counter intuitive, as this would presumably lessen the possibilities of foreigners' exports to the U.S.
Government intervention can serve to stabilize the macro economy by
A. Regulating monopolies and encouraging the equitable distribution of output. B. Reducing employment and encouraging economic growth. C. Reducing inflation and encouraging economic growth. D. Reducing inflation and encouraging the equitable distribution of income.
An important element that is excluded from U.S. poverty figures is:
A. interest income. B. earned income. C. in-kind transfers such as food stamps and housing assistance. D. income tax.