Solved

If at a Given Real Interest Rate Desired National Saving

Question 41

Multiple Choice

If at a given real interest rate desired national saving were $140 billion, domestic investment were $90 billion, and net capital outflow were $40 billion, then at that real interest rate in the loanable funds market there would be a


A) surplus; the real interest rate would rise.
B) surplus; the real interest rate would fall.
C) shortage; the real interest rate would rise.
D) shortage; the real interest rate would fall.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents