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Table 23.3.3 -Refer to Table 23.3.3. the Table Shows the Demand for Shows

Question 129

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Table 23.3.3
Table 23.3.3    -Refer to Table 23.3.3. The table shows the demand for loanable funds schedule and the private supply of loanable funds schedule when the government's budget is balanced. If the Ricardo-Barro effect occurs, and if the government budget deficit is $2.0 trillion, the real interest rate is ________ percent a year and the quantity of investment is ________ trillion. A) 5.0; $5.0 B) 9.0; $7.0 C) 3.0; $7.5 D) 5.0; $7.0 E) 7.0; $6.0
-Refer to Table 23.3.3. The table shows the demand for loanable funds schedule and the private supply of loanable funds schedule when the government's budget is balanced. If the Ricardo-Barro effect occurs, and if the government budget deficit is $2.0 trillion, the real interest rate is ________ percent a year and the quantity of investment is ________ trillion.


A) 5.0; $5.0
B) 9.0; $7.0
C) 3.0; $7.5
D) 5.0; $7.0
E) 7.0; $6.0

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