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In the Figure Above, the SLF Curve Is the Supply

Question 126

Multiple Choice

In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. If there is no Ricardo-Barro effect, the figure shows a situation in which the government has a budget


A) deficit of $1.6 trillion.
B) surplus of $1.8 trillion.
C) deficit of $0.2 trillion.
D) surplus of $1.4 trillion.
E) surplus of $0.2 trillion.

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