Use the Table Below to Answer the Following Question

question 80

Multiple Choice

Use the table below to answer the following question.
Table 23.3.1
Data from Northland

-Refer to Table 23.3.1. Table 23.3.1 shows the market for loanable funds in Northland. The government budget is balanced. If the government moves from a balanced budget to a surplus of $20 billion, the new equilibrium has a real interest rate of ________ percent and quantity of loanable funds traded equal to ________.

• A)6.5; $110 billion
• B)6.5; $90 billion
• C)5.5; $90 billion
• D)5.5; $110 billion
• E)6; $120 billion

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Definitions:

Soybean Oil

A vegetable oil extracted from the seeds of the soybean, commonly used in cooking and in the production of processed foods.

Margarine

A processed food product made primarily from vegetable oils, used as a butter substitute.

Price Of Gasoline

The cost at which gasoline is sold, determined by various factors including crude oil prices, taxes, demand, and supply conditions.

Demand (D)

A fundamental concept in economics that describes consumers' willingness and ability to purchase goods or services at various prices.