If the Ricardo- Barro effect occurs, _______ in private saving finances the government budget deficit, and the real interest rate _______.

Name: If the Ricardo- Barro effect occurs, _______ in private saving finances the government budget deficit, and the real interest rate _______.
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The Ricardo-Barro effect suggests that when the government runs a budget deficit, individuals increase their private savings to offset the expected future tax liabilities, leaving the real interest rate unchanged.

If the Ricardo- Barro Effect Occurs, _______ in Private Saving