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.
Correct Answer:
Verified
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