With an increase in global tension during 2005 and 2006, many governments increased defense spending, which decreased

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With an increase in global tension during 2005 and 2006, many governments increased defense spending, which decreased government budget surpluses.

Show, on a graph, the effects of a decrease in government budget surpluses if there is no Ricardo-Barro effect. Explain how the effects differ if there is a partial Ricardo-Barro effect.

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Foundations Of Macroeconomics

ISBN: 9780691179261

7th Global Edition

Authors: Bade, Robin;Parkin, Michael

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