Use the Table Below to Answer the Following Questions

question 27

Multiple Choice

Use the table below to answer the following questions.
Table 7.2.1
The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule.

-Consider Table 7.2.1.If planned saving increases by $0.5 trillion at each real interest rate, what is the new equilibrium real interest rate?

• A)5.5 percent a year
• B)4.5 percent a year
• C)5 percent a year
• D)6.0 percent a year
• E)There is no new equilibrium real interest rate.

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