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 no Ricardo-Barro effect, the equilibrium real interest rate is-------------------- and the equilibrium quantity of investment is
--------------------.
A) 6 percent; $600 billion
B) 4 percent; $700 billion
C) 4 percent; $500 billion
D) 8 percent, $500 billion
E) 8 percent; $700 billion
Correct Answer:
Verified
Q16: For a government to add to the
Q17: Suppose the government has a budget surplus
Q18: Financial capital
A)is accumulated investment.
B)depreciates each year.
C)is another
Q19: The crowding-out effect is the tendency for
A)higher
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