Table 23.3.5 -Refer to Table 23.3.5. the Table Shows an Economy's Demand

question 22

Multiple Choice

Table 23.3.5

-Refer to Table 23.3.5. The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule when the government's budget is balanced. If the government budget surplus is $2.0 trillion, the real interest rate is ________ percent a year, the quantity of investment is ________ trillion, and the quantity of private saving is ________ trillion.

• A)10; $5.5; $7.5
• B)10; $7.5; $5.5
• C)8; $6.5; $6.5
• D)6; $7.5; $7.5
• E)6; $7.5; $5.5

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Definitions:

Total Asset Turnover

A financial efficiency ratio that measures how effectively a company uses its assets to generate sales revenue.

Fixed Assets

Fixed assets are long-term tangible pieces of property or equipment that a firm owns and uses in its operations to generate income.

Statement Of Cash Flows

A firm’s financial statement that summarizes its sources and uses of cash over a specified period.