-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) deficit; lower
B) deficit; higher
C) surplus; higher
D) deficit; no different
E) surplus; lower

Question

-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) deficit; lower 
B) deficit; higher 
C) surplus; higher 
D) deficit; no different 
E) surplus; lower

Quizplus · Accepted Answer

The Answer of 
-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) deficit; lower 
B) deficit; higher 
C) surplus; higher 
D) deficit; no different 
E) surplus; lower

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