-The Above Table Has the Private Demand for Loanable Funds

question 99

Multiple Choice

-The above table has the private demand for loanable funds and the private supply of loanable funds schedules.If the government budget surplus is $200 billion,and there is a Ricardo-Barro effect,the equilibrium real interest rate is ________ and the equilibrium quantity of loanable funds is ________.

• A)8 per cent;$700 billion
• B)8 per cent,$500 billion
• C)4 per cent;$500 billion
• D)6 per cent;$600 billion
• E)4 per cent;$700 billion

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