Question: 2. The table sets out data for an economy when the government's budget is balanced. Loanable funds Loanable funds Real interest rate demanded supplied (percent

2. The table sets out data for an economy when the government's budget is balanced. Loanable funds Loanable funds Real interest rate demanded supplied (percent per year) (trillions of 2021 dollars) 8.5 5.5 8.0 6.0 7.5 6.5 7.0 7.0 6.5 7.5 6.0 8.0 5.5 8.5 a. Calculate the equilibrium real interest rate, investment, and private saving. b. If planned saving increases by $0.5 trillion at each real interest rate, explain the change in the real interest rate. c. If planned investment increases by $1 trillion at each real interest rate, explain the change in the real interest rate
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