-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) 6 percent; $600 billion
B) 4 percent; $700 billion
C) 8 percent, $500 billion
D) 8 percent; $700 billion
E) 4 percent; $500 billion
Correct Answer:
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