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0/1 Question 7 Figure 29-7: Market for Loanable Funds with Government Borrowing Interest rate (%) 12 Supply of 10 loanable funds 8 6 4 Demand for 2 loanable funds 0 10 20 30 40 50 60 70 80 90 100 Quantity of loanable funds (billions of dollars) Use the "Market for Loanable Funds with Government Borrowing" Figure 29-7. In the accompanying figure, the government budget goes from balanced to a deficit. With a balanced budget, private investment is equal to and with a budget deficit private investment is equal to _ a. $40 billion; $40 billion b. $60 billion; $20 billion c. $60 billion; $40 billion X d. $60 billion; $80 billion e. $0 billion; $80 billion