The Above Table Has the Private Demand for Loanable Funds

question 42

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 surplus is $200 billion, and there is no Ricardo-Barro effect, the equilibrium real interest rate is _{--------------------}and the equilibrium quantity of loanable funds is _{--------------------}.

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

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Definitions:

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Issues or situations that require a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Genetic Factors

Inherited elements from parents that influence an individual's traits, characteristics, and susceptibility to certain conditions.

Schizophrenia

A complex, long-term medical illness, affecting about 1% of Americans, characterized by disturbances in thought, perception, and behavior, including hallucinations, delusions, and disorganized thinking.

Concordance Rate

The statistical measure indicating the likelihood of two related individuals both exhibiting a particular trait or disorder.