In the figure, 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 the situation in which the government has a so that the equilibrium real interest rate is equilibrium quantity of investment is Real interest rate (percent per year) 12- 10- and the SLF 8- O A. budget deficit; 6 percent; $1.5 trillion O B. budget deficit; 4 percent; $1 trillion 6- OC. budget surplus; 6 percent; $1.5 trillion O D. budget surplus; 4 percent; $1 trillion 4- O E. balanced budget; 6 percent; $1.5 trillion 2- DLF PDLF 0.5 1.0 1.5 2.0 2.5 3.0 Loanable funds (trillions of 2012 dollars)

In the figure, 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 the situation in which the government has a so that the equilibrium real interest rate is equilibrium quantity of investment is Real interest rate (percent per year) 12- 10- and the SLF 8- O A. budget deficit; 6 percent; $1.5 trillion O B. budget deficit; 4 percent; $1 trillion 6- OC. budget surplus; 6 percent; $1.5 trillion O D. budget surplus; 4 percent; $1 trillion 4- O E. balanced budget; 6 percent; $1.5 trillion 2- DLF PDLF 0.5 1.0 1.5 2.0 2.5 3.0 Loanable funds (trillions of 2012 dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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