If at a Given Real Interest Rate Desired National Saving

question 132

Multiple Choice

If at a given real interest rate desired national saving is $60 billion,domestic investment is $30 billion,and net capital outflow is $20 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.

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Definitions:

Puritan Orthodoxy

The strict adherence to the religious and social practices and beliefs of the Puritans, who sought purity of worship and doctrine, and were influential in the early settlement of New England.

Direct Communication

The process of conveying information or messages between parties without the use of intermediaries or media, ensuring clarity and immediacy in the exchange.

Covenant of Grace

A theological term used in Christian doctrine that denotes an agreement between God and humanity in which salvation is offered through faith in Christ.

Puritan Congregationalists

Members of a Protestant sect that arose in the 16th century advocating strict religious discipline along with the simplification of the ceremonies and creeds of the Church of England.