-In the figure above, if there is no Ricardo-Barro effect, the government has a budget ________ because the ________.
A) deficit of 0.4 trillion; SLF curve shows a smaller quantity of LF than the PSLF curve.
B) surplus of 0.2 trillion; SLF curve lies to the right of the PSLF curve.
C) deficit of 0.2 trillion; SLF curve lies to the right of the PSLF curve.
D) surplus of -0.2 trillion; SLF curve lies to the right of the PSLF curve.
E) surplus of 0.4 trillion; SLF curve shows a larger quantity of LF than the PSLF curve.

Question

-In the figure above, if there is no Ricardo-Barro effect, the government has a budget ________ because the ________.
A) deficit of 0.4 trillion; SLF curve shows a smaller quantity of LF than the PSLF curve. 
B) surplus of 0.2 trillion; SLF curve lies to the right of the PSLF curve. 
C) deficit of 0.2 trillion; SLF curve lies to the right of the PSLF curve. 
D) surplus of -0.2 trillion; SLF curve lies to the right of the PSLF curve. 
E) surplus of 0.4 trillion; SLF curve shows a larger quantity of LF than the PSLF curve.

Quizplus · Accepted Answer

The Answer of 
-In the figure above, if there is no Ricardo-Barro effect, the government has a budget ________ because the ________.
A) deficit of 0.4 trillion; SLF curve shows a smaller quantity of LF than the PSLF curve. 
B) surplus of 0.2 trillion; SLF curve lies to the right of the PSLF curve. 
C) deficit of 0.2 trillion; SLF curve lies to the right of the PSLF curve. 
D) surplus of -0.2 trillion; SLF curve lies to the right of the PSLF curve. 
E) surplus of 0.4 trillion; SLF curve shows a larger quantity of LF than the PSLF curve.

-In the Figure Above, If There Is No Ricardo-Barro Effect