Multiple Choice

-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) surplus of $2 trillion.
B) deficit of $2 trillion.
C) surplus of $14 trillion.
D) deficit of $11 trillion.
E) surplus of $12 trillion.
Correct Answer:
Verified
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