-In the Figure Above, the SLF Curve Is the Supply

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.Given these curves, there is a government budget ________ and therefore the real interest rate is ________ than it would be otherwise.

A) surplus; higher
B) surplus; lower
C) deficit; higher
D) deficit; lower
E) deficit; not different