Question: Use the following table to work following problems. Real Interest Rate Loanable funds demanded Loanable funds supplied (percent per year) (billions of 2005 dollars) in

 Use the following table to work following problems. Real Interest Rate

Use the following table to work following problems. Real Interest Rate Loanable funds demanded Loanable funds supplied (percent per year) (billions of 2005 dollars) in Principles of Macroeconomics Okanagan College Homework - FOUR Draw the demand and supply curve of loanable funds and explain the equilibrium situation. Suppose that government has a budget surplus of $10 billion. What are the equilibrium real interest rate, quantity of investment, and quantity of private saving? (Use diagram) (iii) Suppose that government has a budget deficit of $10 billion. What are the equilibrium real interest rate, quantity of investment, and quantity of private saving? (Use diagram)

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