Question: Wus, 8. The table sets out the data for an economy wher the government's budget is balanced. Real interest rate (percent per year) Loanable Loanable
Wus, 8. The table sets out the data for an economy wher the government's budget is balanced. Real interest rate (percent per year) Loanable Loanable funds funds demanded supplied (trillions of 2009 dollars) 8.5 5.5 6.0 7.5 7.0 7.0 7.5 8.0 5.5 8.5 8.0 Ova + 6.5 6.5 6.0 10 a. Calculate the equilibrium real interest rate, investment, and private saving. b. If planned saving increases by $0.5 trillion at each real interest rate, explain the change in the real interest rate. c. If planned investment increases by $1 trillion at each real interest rate, explain the change in saving and the real interest rate
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