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Question list 0 Question 4 0 Question 5 0 Question 6 0 Question 7 0 Question 8 0 Question 9 0 Question 10 I The table sets out the data for an economy when the government's budget is balanced. If the government's budget becomes a decit of $1 .0 billion, what are the real interest rate and investment? Does crowding out occur? E> If the government's budget becomes a decit of $1 .0 billion, the real interest rate is D percent a year and the quantity of investment is $|:| billion. >>> Answer to 1 decimal place. . Real Loanable funds Loanable funds Interest rate demanded supplied (percent per year) (billions of 2007 dollars) 4 8.5 7.5 5 8.0 8.0 6 7.5 8.5 7 7.0 9.0 8 6.5 9.5 9 6.0 10.0 10 5.5 10.5

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