If at Some Interest Rate Desired Investment Is $400 Billion

question 69

Essay

If at some interest rate desired investment is $400 billion, desired private saving is $600 billion, and the budget deficit is $300 billion, is there a surplus or a shortage in the market for loanable funds? What does this imply would happen to interest rates?

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Definitions:

Generalization Stimulus

The process by which a response is made in the presence of a new stimulus that is similar, but not identical, to the original conditioned stimulus.

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response.

Avoidance

A behavior or mental process consciously or unconsciously designed to prevent exposure to a feared object, task, or situation.

Sunscreen

A lotion or spray applied to the skin to protect it from the harmful effects of the sun's UV rays.