3. If at a given real interest rate desired national saving is $120 billion, domestic investment is $84 billion, and net capital outflow is $56 billion, then at that real interest rate in the loanable funds market there is a a. surplus. The real interest rate will fall. b. shortage. The real interest rate will fall. c. shortage. The real interest rate will rise. d. surplus. The real interest rate will rise.
3. If at a given real interest rate desired national saving is $120 billion, domestic investment is $84 billion, and net capital outflow is $56 billion, then at that real interest rate in the loanable funds market there is a a. surplus. The real interest rate will fall. b. shortage. The real interest rate will fall. c. shortage. The real interest rate will rise. d. surplus. The real interest rate will rise.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Savings,investment And The Financial System
Section: Chapter Questions
Problem 9PA
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![3. If at a given real interest rate desired national saving is $120 billion, domestic investment is $84 billion, and net
capital outflow is $56 billion, then at that real interest rate in the loanable funds market there is a
a. surplus. The real interest rate will fall.
b. shortage. The real interest rate will fall.
c. shortage. The real interest rate will rise.
d. surplus. The real interest rate will rise.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7893d772-7ded-4662-8cb4-3dbd26f62b1c%2Fbe1266ae-3a32-498d-8ae5-1b7719f974a2%2Fq4pq86jc_processed.png&w=3840&q=75)
Transcribed Image Text:3. If at a given real interest rate desired national saving is $120 billion, domestic investment is $84 billion, and net
capital outflow is $56 billion, then at that real interest rate in the loanable funds market there is a
a. surplus. The real interest rate will fall.
b. shortage. The real interest rate will fall.
c. shortage. The real interest rate will rise.
d. surplus. The real interest rate will rise.
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