If at a Given Real Interest Rate Desired National Saving

question 178

Multiple Choice

If at a given real interest rate desired national saving is $120 billion, domestic investment is $84 billion, and net capital outflow is $56 billion, then at that real interest rate in the loanable funds market there is a

• A)surplus.The real interest rate will fall.
• B)shortage.The real interest rate will fall.
• C)shortage.The real interest rate will rise.
• D)surplus.The real interest rate will rise.

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Definitions:

Biconditional

A logical connection between two statements where both or neither of the statements are true, often expressed as "if and only if".

Conjunction

A logical operator that connects two statements and indicates that both statements are true simultaneously.

Negation

A logical operation that reverses the truth value of a proposition.

Disjunction

A logical operation expressing the condition of having at least one of two statements be true; represented by "or."