Table 23.3.3 -Refer to Table 23.3.3. the Table Shows the Demand for Shows

question 43

Multiple Choice

Table 23.3.3

-Refer to Table 23.3.3. The table shows the demand for loanable funds schedule and the private supply of loanable funds schedule when the government's budget is balanced. If the Ricardo-Barro effect occurs, and if the government budget deficit is $2.0 trillion, the real interest rate is ________ percent a year and the quantity of investment is ________ trillion.

• A)5.0; $5.0
• B)9.0; $7.0
• C)3.0; $7.5
• D)5.0; $7.0
• E)7.0; $6.0

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