At what level of disposable income is saving zero?

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. If there is no Ricardo-Barro effect, the figure shows a situation in which the government has a budget

A) deficit of $0.2 trillion. B) deficit of $1.6 trillion. C) surplus of $1.4 trillion. D) surplus of $0.2 trillion. E) surplus of $1.8 trillion.

In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds and ________ investment

A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases