Use the Table Below to Answer the Following Questions

question 119

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 investment 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:

Consumer Income

The total earnings of a consumer, influencing their purchasing power and consumption habits.

High-Quality Products

Goods that exceed the standard expectations in performance, durability, and reliability.

Eating Out

Refers to the activity of dining in restaurants or other food establishments rather than at home.

Carb-Friendly

A term used to describe foods that are low in carbohydrates, catering to diets that restrict carb intake for health or weight loss reasons.