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

question 59

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

---

Definitions:

Cognitive Distortion

A mental framework that consists of skewed or biased ways of thinking, often leading to negative emotions and behaviors.

Overgeneralization

A cognitive distortion where an individual draws a general rule or conclusion based on a single or limited number of events.

REBT

Rational Emotive Behavior Therapy, a form of psychotherapy that helps individuals identify irrational beliefs and patterns of thinking to develop healthier emotional responses and behaviors.

ABC Model

A cognitive-behavioral approach suggesting that it is not merely events that cause an individual distress, but rather the beliefs about those events.