If the government's budget changes to a surplus of $2.0 trillion, the real interest rate is _______ percent a year. >>> Answer to 1 decimal

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter21: Financial Markets, Saving, And Investment
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If the government's budget changes to a surplus of $2.0 trillion, the real interest rate is
_______
percent a year.
>>>
Answer to 1 decimal place.
Question 9
The table shows an economy's demand for and supply of loanable funds
schedules when the government's budget is balanced.
Real
interest rate Loanable funds demanded Loanable funds supplied
(percent
(trillions of 2012 dollars)
per year)
st
4
5
6.0
7
8
9
10
8.5
8.0
7.5
7.0
6.5
6.0
5.5
4.5
5.0
5.5
6.0
6.5
7.0
7.5
If the government's budget changes to a surplus of $2.0 trillion, what happens
to the real interest rate, investment, and private saving?
Transcribed Image Text:Question 9 The table shows an economy's demand for and supply of loanable funds schedules when the government's budget is balanced. Real interest rate Loanable funds demanded Loanable funds supplied (percent (trillions of 2012 dollars) per year) st 4 5 6.0 7 8 9 10 8.5 8.0 7.5 7.0 6.5 6.0 5.5 4.5 5.0 5.5 6.0 6.5 7.0 7.5 If the government's budget changes to a surplus of $2.0 trillion, what happens to the real interest rate, investment, and private saving?
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