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Assume a market for loan-able funds with the following values: Y* = 1000, C = 400, G = 200, T = 50 and I =
Assume a market for loan-able funds with the following values: Y* = 1000, C = 400, G = 200, T = 50 and I = 400. In this economy
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1.The current fund market is in equilibrim.
2.The real interest rate is lower than equilibrium rate.
3.We cannot determine whether the market is in equilibirum or not with the given information.
4.the real interest rate is higher than equilibrium rate.
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