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

question 19

Multiple Choice

-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.

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Definitions:

Proximal Stimuli

The stimuli that directly interact with the senses, as opposed to distal stimuli which are objects and events in the environment that provide information for the proximal stimuli.

Distal Stimuli

Objects or events in the external world that provide the basis for the perception of our immediate environment, as opposed to the sensory inputs that they generate.

Detectable Input

A level of stimulus that is sufficient to be noticed or detected by the sensory systems.

Wavelength

The distance between successive crests of a wave, usually used in the context of electromagnetic waves.