-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

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Definitions:

Critical-Thinking Attitude

An approach that involves objective analysis and evaluation of an issue to form a judgment.

Caring Attitude

An approach that embodies compassion, concern, and consideration for others, showing support and understanding in a healthcare context.

Client's Crying

An emotional response or manifestation of feelings of distress, sadness, or joy in a therapeutic or caregiving environment.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, crucial in problem solving and decision-making processes.