7.2 Additional Problem 23 (algo)Question HelpThe table sets out the data for an economy when the government's budget isbalanced.Realinterest rate(percentper year)Loanable funds Loanable fundsdemandedsuppliedCalculate the equilibrium real interest rate, investment, and private saving.(billions of 2007 dollars)If planned saving decreases by $1 billion at each real interest rate, explain the9.07.0change in the real interest rate and investment,38.08.0709.0If planned investment decreases by $1 billion at each real interest rate, explain thechange in saving and the real interest rate.6.010.05.011.0The real interest rate is percent a year.>>> Answer to 1 decimal place.74.012.03.013.0

Equilibrium real interest rate is at a point where loanable funds demanded is equal to supplied. At…

The table sets out the data for an economy when the government's budget is balanced. Calculate the equilibrium real interest rate, investment, and private saving. If planned saving decreases by $1 billion at each real interest rate, explain the change in the real interest rate and investment. If planned investment decreases by $1 billion at each real interest rate, explain the change in saving and the real interest rate. The real interest rate is O percent a year. >>> Answer to 1 decimal place.

The table sets out the data for an economy when the government's budget is balanced. Calculate the equilibrium real interest rate, investment, and private saving. If planned saving decreases by $1 billion at each real interest rate, explain the change in the real interest rate and investment. If planned investment decreases by $1 billion at each real interest rate, explain the change in saving and the real interest rate. The real interest rate is O percent a year. >>> Answer to 1 decimal place.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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