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:

Uniform Probate Code

A set of laws designed to standardize the process of administering a deceased person's estate across different jurisdictions.

Devise

Real property that is left in a will. In states that have adopted the Uniform Probate Code, the term refers to both real and personal property.

Defense of Marriage Act

A U.S. federal law enacted in 1996 that defined marriage as a union between one man and one woman for federal and inter-state recognition purposes, partially struck down in 2013.

Constitutionality

The quality or condition of being in accordance with a political constitution, especially pertaining to the legality of actions or statutes.