If at a Given Real Interest Rate Desired National Saving

question 268

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 real interest rate would fall.

---

Definitions:

Raw Materials

The fundamental materials used in the production process, which are transformed into finished goods.

Inventory Balance

The quantity of goods or materials on hand at a given time, representing the difference between inventory received and inventory sold or used.

Direct Labor Cost

The cost of wages and benefits for employees who are directly involved in the production of goods.

Product WZ

A specific product referenced by its name or model identifier "WZ," indicating a particular good produced by a company.