
-The above table has the private demand for loanable funds and the private supply of loanable funds schedules.If the government budget surplus 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) 8 per cent;$700 billion
B) 8 per cent,$500 billion
C) 4 per cent;$500 billion
D) 6 per cent;$600 billion
E) 4 per cent;$700 billion
Correct Answer:
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