Title: Suppose the government has a budget deficit of $2 billion. If the Ricardo-Barro Post by: kokobean1130 on Apr 9, 2016 Suppose the government has a budget deficit of $2 billion. If the Ricardo-Barro effect is correct, then how much crowding out of investment occurs?
A.more than $2 billion B.some crowding out occurs, but less than $2 billion C.exactly equal to $2 billion dollars D.No crowding out occurs and investment does not change. E.No crowding out occurs because investment increases by $2 billion. Title: Re: Suppose the government has a budget deficit of $2 billion. If the Ricardo-Barro Post by: bio_man on Apr 12, 2016 Some crowding out occurs, but less than $2 billion
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