Question: Need Help The table sets out the data for an economy when the govemment's budget is balanced. Real Calculate the equilibrium real interest rate, investment,

Need Help

Need Help The table sets out the data for an economy when

The table sets out the data for an economy when the govemment's budget is balanced. Real Calculate the equilibrium real interest rate, investment, and private saving. interest rate (percent if planned saving decreases by $1 billion at each real interest rate, explain the change in the real interest rate and per year) investment. 2 if planned investment decreases by $1 billion at each real interest rate, explain the change in saving and the real interest 2 rate. 5 The real interest rate is 3 percent a year. 6 > Answer to 1 decimal place. ; Loanable funds Loanable funds demanded supplied (billions of 2007 dollars) 8.0 6.0 7.0 7.0 6.0 8.0 5.0 9.0 4.0 10.0 3.0 1 1.0 2.0 12.0 The quantity of investment is $ 7 billion, and the quantity of private saving is $ 7 billion it planned saving decreases by $1.0 billion at each real interest rate, the loanable funds decreases and the quantity of investment 0 A. demand for; decreases O B. demand for; increases 0 0. supply of; increases 0 D. supply of; decreases

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!