Table 23.3.2

-Refer to Table 23.3.2. The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. The quantity of loanable funds demanded increases by $1 trillion at each real interest rate and the quantity of loanable funds supplied increases by $2 trillion at each real interest rate. If the government wants investment to be $9 trillion, it must ________ its budget balance by ________ trillion.
A) increase; $1
B) decrease; $1
C) increase; $1.5
D) decrease; $1.5
E) increase; $2
Correct Answer:
Verified
Q128: Use the table below to answer the
Q129: Table 23.3.3 Q130: The government of Greece is running a Q131: Use the table below to answer the Q132: The Ricardo-Barro effect of a government budget
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