Back to Assignment Attempts 0 Keep the Highest 0/6 3. Effects of a government budget deficit...

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Back to Assignment Attempts 0 Keep the Highest 0/6 3. Effects of a government budget deficit Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving. domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate (Percent) 7 National Saving (Billions of dollars) 45 Domestic Investment (Billions of dollars) Net Capital Outflow 20 6 40 5 35 4 30 . 25 60 2 20 2&32 30 40 50 5 70 10 (Billions of dollars) -15 -10 -5 Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market A-Z Back to Assignment Attempts 0 Keep the Highest 0/6 3. Effects of a government budget deficit Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving. domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate (Percent) 7 National Saving (Billions of dollars) 45 Domestic Investment (Billions of dollars) Net Capital Outflow 20 6 40 5 35 4 30 . 25 60 2 20 2&32 30 40 50 5 70 10 (Billions of dollars) -15 -10 -5 Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market A-Z