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-In the Figure Above, the DLF Curve Is the Demand

Question 199

Multiple Choice

-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) deficit of $1 trillion. B) surplus of $1 trillion. C) deficit of $0.5 trillion. D) deficit of $1.5 trillion. E) surplus of $0.5 trillion.
-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) deficit of $1 trillion.
B) surplus of $1 trillion.
C) deficit of $0.5 trillion.
D) deficit of $1.5 trillion.
E) surplus of $0.5 trillion.

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