If at a Given Real Interest Rate Desired National Saving

question 61

Multiple Choice

If at a given real interest rate desired national saving is $140 billion,domestic investment is $90 billion,and net capital outflow is $60 billion,then at that real interest rate in the loanable funds market there is a

• A)surplus.The real interest rate will rise.
• B)surplus.The real interest rate will fall.
• C)shortage.The real interest rate will rise.
• D)shortage.The real interest rate will fall.

---

Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.