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-The Above Table Has the Private Demand for Loanable Funds

question 37

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 no Ricardo-Barro effect, the equilibrium real interest rate is ________ and the equilibrium quantity of loanable funds is ________. A)  6 per cent; $600 billion B)  8 per cent; $700 billion C)  4 per cent; $500 billion D)  4 per cent; $700 billion E)  8 per cent, $500 billion
-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 no Ricardo-Barro effect, the equilibrium real interest rate is ________ and the equilibrium quantity of loanable funds is ________.

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Definitions:

Diagonal Line

A line segment that joins two non-adjacent vertices in a polygon or two vertices in a polyhedron that are not on the same face, often creating a sense of movement in artwork or design.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product demanded at those prices, generally sloping downwards from left to right.

Price Constraint

A limitation on the price-setting process, often due to factors such as market competition, production costs, or regulatory guidelines.

Break-even Point

The production level at which total revenues equal total expenses, indicating no profit or loss, crucial for understanding the financial feasibility of a product or business.

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