If at a Given Real Interest Rate Desired National Saving

question 111

Multiple Choice

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.