-The Above Table Has the Private Demand for Loanable Funds

question 37

Multiple Choice

-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) 6 per cent; $600 billion
• B) 8 per cent; $700 billion
• C) 4 per cent; $500 billion
• D) 4 per cent; $700 billion
• E) 8 per cent, $500 billion

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Definitions:

Information Power

A type of marketing channel power within an administered vertical marketing system in which one party (e.g., the manufacturer) provides or withholds important information to influence the actions of another party (e.g., the retailer).

Market Data

Information related to prices, supply, demand, and dynamics of the market that helps businesses to make informed decisions.

Walmart

A multinational retail corporation operating a chain of hypermarkets, discount department stores, and grocery stores, known for its extensive product selection and low prices.

Corporate Vertical Marketing System

A structured form of marketing system where subsequent stages of production and distribution are under a single ownership.