-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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Definitions:

Hostile Manner

A way of behaving or communicating that is aggressive, unfriendly, and antagonistic.

Uncertainty

A psychological state of having limited knowledge or lacking confidence in one’s knowledge, leading to ambiguity in perception or decision making.

Dichotomous

Divided or dividing into two sharply distinct opposites or contrasts.

Anticipate Events

The ability to foresee or predict future occurrences based on patterns, knowledge, or intuition.