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.

---

Definitions:

Low-Profit Areas

Regions or communities characterized by below-average income levels and economic activity, often facing higher instances of poverty and limited access to resources.

IRS Regulations

Rules and guidelines issued by the Internal Revenue Service governing federal tax administration in the United States.

Employment Taxes

Taxes that an employer is required to withhold and/or pay on behalf of their employees, including income tax, social security, and Medicare taxes.

Family Leave

An approved absence from work, typically for the birth or adoption of a child or for the care of family members.