Suppose that the government has a budget deficit of $1 trillion. What are the real interest rate, the quantity of investment, and the quantity of private saving? Is there any crowding out in this situation?
The table shows an economy€™s demand for loanable funds and the supply of loanable funds schedules, when the government€™s budget is balanced.

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Real interest rate percent per year Loanable funds demanded Loanable funds supplied (trillions of 2005 dollars) 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.5 6.0 6.5 6 7.5 8.0 8.5 10