The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. The quantity of loanable funds demanded increases by $1.0 trillion at each real interest rate. The quantity of loanable funds supplied increases by $2.0 trillion at each real interest rate. After these changes, what is the real interest rate, the quantity of loanable funds, investment, and private saving? >>> Answer to 1 decimal place. The real interest rate is 5 percent a year. The quantity of loanable funds is $ trillion, investment is $ trillion, and saving is $s trillion. Real interest rate (percent per year) 4 5 6 7 8 9 10 Loanable funds Loanable funds demanded supplied (trillions of 2012 dollars per year) 8.5 8.0 7.5 7.0 6.5 6.0 5.5 6.5 7.0 7.5 8.0 8.5 9.0 9.5

The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. The quantity of loanable funds demanded increases by $1.0 trillion at each real interest rate. The quantity of loanable funds supplied increases by $2.0 trillion at each real interest rate. After these changes, what is the real interest rate, the quantity of loanable funds, investment, and private saving? >>> Answer to 1 decimal place. The real interest rate is 5 percent a year. The quantity of loanable funds is $ trillion, investment is $ trillion, and saving is $s trillion. Real interest rate (percent per year) 4 5 6 7 8 9 10 Loanable funds Loanable funds demanded supplied (trillions of 2012 dollars per year) 8.5 8.0 7.5 7.0 6.5 6.0 5.5 6.5 7.0 7.5 8.0 8.5 9.0 9.5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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