Attempts

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline $0$ & $3\mathrm{.}3$ & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Keep the Highest $\backslash (3\mathrm{.}3/6\backslash )$

$3.$ Effects of a government budget deficit

Suppose a hypothetical open economy uses the U$.$S$.$ dollar as currency. The table below presents data describing the relationship between different real interest rates and this economy's levels of national saving, domestic investment, and net capital outflow. Assume that the economy is currently operating under a balanced government budget.

$\backslash$begin$\{$tabular$\}\{$cccc$\}$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$c$\}$

Real Interest Rate $\backslash \backslash$

$($Percent$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

National Saving $\backslash \backslash$

$($Billions of dollars$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Domestic Investment $\backslash \backslash$

$($Billions of dollars$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Net Capital Outflow $\backslash \backslash$

$($Billions of dollars$)$

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline $7$ & $50$ & $30$ & $-20\backslash \backslash$

$\backslash$hline $6$ & $45$ & $40$ & $-15\backslash \backslash$

$\backslash$hline $5$ & $40$ & $50$ & $-10\backslash \backslash$

$\backslash$hline $4$ & $35$ & $60$ & $-5\backslash \backslash$

$\backslash$hline $3$ & $30$ & $70$ & $0\backslash \backslash$

$\backslash$hline $2$ & $25$ & $80$ & $5\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$