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Can you check my work and assist? The table below shows the savings and investment functions for the economy of Brittenla (2) (3) Investment Investment

Can you check my work and assist?

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The table below shows the savings and investment functions for the economy of Brittenla (2) (3) Investment Investment (4) (5 ) (1 ) Spending Spending 2 Savings Savings 2 Rate of (billions of billions of billions of (billions of Interest (%) dollars) dollars) dollars dollars) 1 850 1050 250 450 2 750 950 350 550 3 650 850 450 650 4 550 1750 550 $750 5 450 650 650 850 6 350 550 750 950 7 250 4501 850 1050 8 150 350 950 1150 a. What is the equilibrium rate of Interest and the amount of loanable funds? Rate of Interest. 4 % Loanable funds: $ 550 billion b. Suppose that there is an increase of $200 billion in Investment. Complete column 3 In the table above. c. According to the theory of loanable funds, what will be the effect? There will be a(n) |decrease In the rate of Interest of $ 100 (billion) in loanable funds, and a(n) increase of 1 percentage points d. Suppose, Instead, that there is an increase of $200 billion In savings. Complete column 5 in the table above e. According to the theory of loanable funds, what will be the effect? There will be a(n) [(Click to select) v of $[ the rate of Interest billion In loanable funds and a(n) |(Click to select) v | of percentage points in

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