Use the Table Below to Answer the Following Questions

question 127

Multiple Choice

Use the table below to answer the following questions.
Table 7.2.2
The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule.
-Consider Table 7.2.2.If planned saving decreases by $1.0 trillion at each real interest rate, what is the new equilibrium real interest rate?

• A)3.5 percent a year
• B)2 percent a year
• C)5 percent a year
• D)2.5 percent a year
• E)There is no new equilibrium real interest rate.

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Definitions:

Future Events

Occurrences or situations that have not yet happened but are anticipated or expected to occur.

Illusory Correlation

An illusory correlation refers to the perceived relationship between two variables when no such relationship exists in reality, often leading to erroneous conclusions.

Perception

The process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events.

Variables

Elements or factors that can be changed and measured within a scientific experiment.