If at a Given Real Interest Rate Desired National Saving

question 268

Multiple Choice

If at a given real interest rate desired national saving were $50 billion, domestic investment were $40 billion, and net capital outflow were $20 billion, then at that real interest rate in the loanable funds market there would be a

• A)surplus; the real interest rate would rise.
• B)surplus; the real interest rate would fall.
• C)shortage; the real interest rate would rise.
• D)shortage; the real interest rate would fall.

---

Definitions:

Short-Term Memory

A component of memory where small amounts of information can be kept for a short period of time.

Leaky Bucket

A metaphor often used in economics and business to describe a process where resources are lost or wasted.

Critical Thinking

The process of objectively analyzing and evaluating an issue to form a judgment.

Memory

The faculty by which the mind stores and remembers information.