The table sets out the data for an economy when the government's budget is balanced. Real interest rate Loanable funds demanded Loanable funds supplied (billions of 2012 dollars) (percent per year) 4 5 6 7 8 9 10 6.5 6.0 5.5 5.0 4.5 4.0 3.5 4.5 5.0 5.5 6.0 6.5 7.0 7.5
The table sets out the data for an economy when the government's budget is balanced. Real interest rate Loanable funds demanded Loanable funds supplied (billions of 2012 dollars) (percent per year) 4 5 6 7 8 9 10 6.5 6.0 5.5 5.0 4.5 4.0 3.5 4.5 5.0 5.5 6.0 6.5 7.0 7.5
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 2.5P
Related questions
Question
What is the equilibrium real interest rate?
The real interest rate is ____ percent a year.
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![Question 5
The table sets out the data for an economy when the government's budget is
balanced.
Real
interest rate Loanable funds demanded Loanable funds supplied
(billions of 2012 dollars)
(percent
per year)
st
10 10
5
8
9
10
6.5
6.0
5.5
5.0
4.5
4.0
3.5
4.5
5.0
5.5
6.0
6.5
7.0
7.5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc19204a3-acb1-474c-b3fc-ef2067d3abd2%2Ffe809b98-d0fb-4a83-b7bd-66e91a34712b%2Fmah1a5f_processed.png&w=3840&q=75)
Transcribed Image Text:Question 5
The table sets out the data for an economy when the government's budget is
balanced.
Real
interest rate Loanable funds demanded Loanable funds supplied
(billions of 2012 dollars)
(percent
per year)
st
10 10
5
8
9
10
6.5
6.0
5.5
5.0
4.5
4.0
3.5
4.5
5.0
5.5
6.0
6.5
7.0
7.5
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