Use the following data to work Problem. The data is for an economy when the government's budget is balanced. 11eb8296_4552_5146_8eeb_77633c17a8b2_SM2864_00 If the government's budget becomes a deficit of $1 trillion, what are the real interest rate, investment, and private savingIs there any crowding out in this situation?

Macroeconomics 11th Edition by Michael Parkin

Edition 11ISBN: 9780133423884

Macroeconomics 11th Edition by Michael Parkin

Edition 11ISBN: 9780133423884

Exercise 14

Use the following data to work Problem. The data is for an economy when the government's budget is balanced.

If the government's budget becomes a deficit of $1 trillion, what are the real interest rate, investment, and private savingIs there any crowding out in this situation?

Explanation

Verified

We know that the crowding-out effect is ...