Use the Table Below to Answer the Following Questions

question 63

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 investment increases by $1.0 trillion at each real interest rate, what is the new equilibrium real interest rate?

• A)7 percent a year
• B)5 percent a year
• C)6.5 percent a year
• D)6.0 percent a year
• E)There is no new equilibrium real interest rate.

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Definitions:

Cities

Large, densely populated urban areas that serve as the major centers of culture, politics, economy, and social services.

Millimetres

A metric unit of length equal to one thousandth of a meter.

IQR

The Interquartile Range, which represents the spread of a dataset, is calculated by subtracting the 25th percentile from the 75th percentile.

Range

The difference between the highest and lowest values in a set of numbers; a measure of dispersion or variability.