The Table Above Gives a Nation's Investment Demand and Saving

question 24

Multiple Choice

$\begin{array}{lllll}&\text { Investment } & \text { Private saving } & \text { Net taxes }& \text { Government expenditures }\\\text { Real interest rate } & \text { (billions of } & \text { (billions of } & \text { (billions of } & \text { (billions of } \\\text { (percent per year) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) }\\\hline 3 & 60 & 20 & 40 & 20 \\4 & 50 & 30 & 40 & 20 \\5 & 40 & 40 & 40 & 20 \\6 & 30 & 50 & 40 & 20 \\7 & 20 & 60 & 40 & 20 \\\hline\end{array}$
The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures.
- The loanable funds market is in equilibrium when the real interest rate is

• A)4 percent.
• B)7 percent
• C)3 percent
• D)5 percent.
• E)6 percent.

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Definitions:

Independent

Not influenced by or connected to others; self-sufficient or autonomous in relation to external conditions or influences.

Dependent

Reliant on something else for support, sustenance, or supply.

Explanation

The act of making something clear or understandable by providing information or reasons.

Argument

A set of statements structured to support a conclusion through reasoning.