Use the Table Below to Answer the Following Questions

question 112

Multiple Choice

Use the table below to answer the following questions.
Table 23.2.3
The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule.

-Consider Table 23.2.3. If planned saving decreases by $1.0 trillion at each real interest rate, what is the new equilibrium real interest rate?

• A)2 percent a year
• B)5 percent a year
• C)2.5 percent a year
• D)3.5 percent a year
• E)There is no new equilibrium real interest rate.

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Definitions:

Exposure Therapy

A psychological treatment that helps individuals confront their fears and anxieties in a controlled and safe environment.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a concern about future events.

Psychopathology

The study of mental disorders, including their symptoms, causes, and treatment, focusing on abnormal behavior and psychological functioning.

Aversive Feelings

Negative feelings that often lead to avoidance behavior, these can include emotions such as disgust, fear, or hatred towards specific stimuli or situations.