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According to the Ricardo-Barro effect, government deficits

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According to the Ricardo-Barro effect, government deficits

According to the Ricardo-Barro effect, government deficits
A) lead to a rise in the equilibrium real interest rate, crowding out investment.
B) lead to simultaneous increases in private saving and no effect on the equilibrium real interest rate and investment.
C) lead to simultaneous decreases in private saving and decreases in the equilibrium real interest rate and investment.
D) lead to a fall in the equilibrium real interest rate and a rise in investment.

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Macroeconomics

Edition: 12^th

Author: Parkin

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More solutions for this book are available here

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