The Above Table Has the Private Demand for Loanable Funds

question 102

Multiple Choice

$\begin{array} { c c c } \hline \begin{array} { c } \text { Real interest rate } \\\text { (percent per year) }\end{array} & \begin{array} { c } \text { Demand for loanable funds} \\\text { (billions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { c } \text { Supply of loanable funds }\\\text { (billions of } \\\text { 2005 dollars) }\end{array} \\\hline 3 & 750 & 450 \\4 & 700 & 500 \\5 & 650 & 550 \\6 & 600 & 600 \\7 & 550 & 650 \\8 & 500 & 700 \\9 & 450 & 750 \\\hline\end{array}$
The above table has the private demand for loanable funds and the private supply of loanable funds schedules
- If the government budget deficit is $200 billion, and there is no Ricardo-Barro effect, the equilibrium real interest rate is_{--------------------} and the equilibrium quantity of investment is
_{--------------------}.

• A)6 percent; $600 billion
• B)4 percent; $700 billion
• C)4 percent; $500 billion
• D)8 percent, $500 billion
• E)8 percent; $700 billion

---

Definitions:

Stimulation

The action of encouraging something to develop, increase, or become more active.

Extraverts

Individuals characterized by their outgoing, energetic, and socially active nature.

Extraverts

Individuals characterized by their outgoing, sociable, and energetic behavior, often thriving in social situations and seeking stimulation from the external world.

Tasks

Specific activities or assignments that require effort or work to be completed, often used in the context of goals, productivity, or employment.