In the Figure Above, the SLF Curve Is the Supply

question 61

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.
- Given these curves, there is a government budget_{--------------------} and therefore the real interest rate is_{--------------------} than it would be otherwise.

• A)surplus; higher
• B)surplus; lower
• C)deficit; not different
• D)deficit; higher
• E)deficit; lower

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