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Can you help with this question and advise of errors? Part Di Saved Rate of interest (%) O 50 100 150 200 250 300 350
Can you help with this question and advise of errors?
Part Di Saved Rate of interest (%) O 50 100 150 200 250 300 350 400 450 500 Quantity of loanable funds (billions of dollars) a. What is the equilibrium rate of Interest in Gluckland? rate of interest: 12 % b. According to the graph, what rate of interest would induce the people of Gluckland to save $200 billion? rate of Interest: 1 % c. According to the graph, what rate of interest would induce the firms of Gluckland to Invest $200 billion? rate of Interest: 14 % d. What change In savings would reduce the interest rate to 10 percent from its present equilibrium, and how much would savings and Investment be as a result? Change In savings: $ billion; new level of savings/Investment: $ billion e. Starting at the original equilibrium In the graph above, what change in Investment would reduce the Interest rate to 10 percent, and how much would savings and Investment be as a result? Change In Investment -$ billion new level of savings/Investment: $ billion Prev. 2 of 5Step by Step Solution
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