If the government budget is balanced, what are the real interest rate, the quantity of loanable funds,
Question:
Suppose that the quantity of loanable funds demanded increases by $1 trillion at each real interest rate and the quantity of loanable funds supplied increases by $2 trillion at each interest rate.
Transcribed Image Text:
Real interest rate percent per year Loanable funds demanded Loanable funds supplied (trillions of 2005 dollars) 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.5 6.0 6.5 6 7.5 8.0 8.5 10
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Related Book For
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
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