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India's Government Runs a Government Budget Surplus

Question 84

Multiple Choice

India's government runs a government budget surplus. If there is no Ricardo-Barro effect, the surplus means that the


A) private supply of loanable funds curve lies to the right of the supply of loanable funds curve.
B) private demand for loanable funds curve lies to the left of the demand for loanable funds curve.
C) private supply of loanable funds curve lies to the left of the supply of loanable funds curve.
D) private supply of loanable funds curve is the same as the supply of loanable funds curve.
E) None of the above answers are correct.

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