The above table has the private demand for loanable funds and the private supply of loanable funds schedules.
- If the government budget deficit is $200 billion, and there is a Ricardo-Barro effect, the equilibrium real interest rate is and the equilibrium quantity of loanable funds is--------------------.
A) 4 percent; $500 billion
B) 6 percent; $600 billion
C) 8 percent; $700 billion
D) 8 percent, $500 billion
E) 4 percent; $700 billion
Correct Answer:
Verified
Q15: Q16: For a government to add to the Q17: Suppose the government has a budget surplus Q18: Financial capital Q19: The crowding-out effect is the tendency for
A)is accumulated investment.
B)depreciates each year.
C)is another
A)higher
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