In the figure above, the DLF curve is the demand for loanable funds curve and the PDLF curve is the private demand for loanable funds curve.
- If there is no Ricardo-Barro effect, the figure shows a situation in which the government has a budget
A) surplus of $1 trillion.
B) deficit of $1 trillion.
C) deficit of $0.5 trillion.
D) deficit of $1.5 trillion.
E) surplus of $0.5 trillion.
Correct Answer:
Verified
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