Use the Table Below to Answer the Following Questions

question 64

Multiple Choice

Use the table below to answer the following questions.
Table 23.2.2
The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule.

-Consider Table 23.2.2. If planned saving increases by $0.5 trillion at each real interest rate, what is the new equilibrium real interest rate?

• A)5.5 percent a year
• B)5 percent a year
• C)4.5 percent a year
• D)6.0 percent a year
• E)There is no new equilibrium real interest rate.

---

Definitions:

Federalist System

A form of government in which power is divided between a central authority and constituent political units (like states or provinces).

Supremacy Clause

The Supremacy Clause is a provision in the United States Constitution, Article VI, Clause 2, stating that the Constitution, federal laws, and treaties made under it are the supreme law of the land, prevailing over state laws to the contrary.

Eminent Domain

The right of a government to expropriate private property for public use, with compensation.

Fair Market Value

An estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.