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.

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