If at a given real interest rate desired national saving were $50 billion, domestic investment were $40 billion, and net capital outflow were $20 billion, then at that real interest rate in the loanable funds market there would be a
A) surplus. The real interest rate would rise.
B) surplus. The real interest rate would fall.
C) shortage. The real interest rate would rise.
D) shortage. The interest rate would fall.
Correct Answer:
Verified
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