Chrome File Edit View History Bo rks Window Help . SunApr16 0 Home X I 771 Quiz , EC072027T4488 iv X 5.: MindTap , Cengage Learning X H Dashboard X I + v 6 C 6 rig.cengagecom/staticb/ui/evo/index.html?deploymentld:59814'l2353502464190243042516&elSBN:9780357133576&id:'l736030882&snapshotldz33722'l0& ] Q I] e E ; Makenzie v v. CENGAGE I MINDTAP Q Search this course 0 My Home Module Seven Quiz 0 X Courses Back 10 Assignment Catalog and Study Tools Attempts I I Keep the Highest / 6 Rental Options 3. Effects of a government budget deficit College Success Tips _ . _ . . 4 Suppose a hypothetical open economy uses the U.S. dollar as currency. The table below presents data describing the relationship between different , real interest rates and this economy's levels of national saving, domestic investment, and net capital outflow. Assume that the economy is currently Career Success Tips operating under a balanced government budget. Help Give Feedback Real Interest Rate National Saving Domestic Investment Net Capital Outflow (Percent) (Billions of dollars) (Billions of dollars) (Billions of dollars) 7 60 30 -10 6 55 4O -5 5 50 50 0 4 45 60 5 3 4O 70 10 2 35 80 15 Given the information in the table above, use the blue points (circle symbol) to plot the demand for Ioanab/e funds. Next, use the orange points (square symbol) to plot the supply of Iaanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market. ('N '\\?J Home X D21 7-1 Quiz - ECO-202-T4488 Ma X MindTap - Cengage Learning X Dashboard X + C ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5981412353502464190243042516&elSBN=9780357133576&id=1736030882&snapshotld=3372210& Makenzie v KK CENGAGE | MINDTAP Q Search this course ? My Home Module Seven Quiz X Courses Given the information in the table above, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points Catalog and Study Tools (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 Rental Options College Success Tips Market for Loanable Funds Career Success Tips 10 O ? Help B Demand Give Feedback -O bongo 6 Supply REAL INTEREST RATE Equilibrium 2 A+ 0 0 20 40 60 80 100 QUANTITY OF LOANABLE FUNDS O On the following graph, plot the relationship between the real interest rate and net capital outflow by using the green points (triangle symbol) to plot the points from the initial data table. Then use the black point (X symbol) to indicate the level of net capital outflow at the equilibrium real interest rate you derived in the previous graph.Home X D21 7-1 Quiz - ECO-202-T4488 Ma X MindTap - Cengage Learning X Dashboard X + C ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5981412353502464190243042516&elSBN=9780357133576&id=1736030882&snapshotld=3372210& Makenzie v KK CENGAGE | MINDTAP Q Search this course ? My Home Module Seven Quiz X Courses On the following graph, plot the relationship between the real interest rate and net capital outflow by using the green points (triangle symbol) to plot the points from the initial data table. Then use the black point (X symbol) to indicate the level of net capital outflow at the equilibrium real interest Catalog and Study Tools rate you derived in the previous graph. A-Z Rental Options ? College Success Tips Net Capital Outflow Career Success Tips 10 A ? Help NCO 8 Give Feedback bongo 6 Eqm. NCO REAL INTEREST RATE 2 A+ -20 -15 -10 -5 0 5 10 15 20 NET CAPITAL OUTFLOW (Billions of dollars) Because of the relationship between net capital outflow and net exports, the level of net capital outflow at the equilibrium real interest rate implies that the economy is experiencing Now, suppose the government is experiencing a budget deficit. This means that , which leads to loanable funds.Chrome File Edit View History Bookmarks Profiles Tab Window Help Q 8 @ Sun Apr 16 2:05 PM Teegan Missed FaceTime Call Home x D2L 7-1 Quiz - ECO-202-T4488 Ma X MindTap - Cengage Learning X Dashboard x + C ^ ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5981412353502464190243042516&elSBN=9780357133576&id=1736030882&snapshotld=3372210& Makenzie v CENGAGE |MINDTAP Q Search this course ? Module Seven Quiz X My Home Courses Because of the relationship between net capital outflow and net exports, the level of net capital outflow at the equilibrium real interest rate implies that the economy is experiencing Catalog and Study Tools Now, suppose the government is experiencing a budget deficit. This means that , which leads to A-Z Rental Options loanable funds. College Success Tips After the budget deficit occurs, suppose the new equilibrium real interest rate is 7%. The following graph shows the demand curve in the foreign- currency exchange market. Career Success Tips ? Help Use the green line (triangle symbol) to show the supply curve in this market before the budget deficit. Then use the purple line (diamond symbol) to show the supply curve after the budget deficit. Give Feedback ? bongo Market for Foreign-Currency Exchange 10 A Initial Supply A+ 8 6 Supply with Deficit REAL EXCHANGE RATE 2Home X D21 7-1 Quiz - ECO-202-T4488 Ma X MindTap - Cengage Learning X Dashboard X + C ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5981412353502464190243042516&elSBN=9780357133576&id=1736030882&snapshotld=3372210& Makenzie v KK CENGAGE | MINDTAP Q Search this course ? My Home Module Seven Quiz X Courses Market for Foreign-Currency Exchange Catalog and Study Tools 10 A A-Z Rental Options Initial Supply 8 College Success Tips Career Success Tips 6 Supply with Deficit REAL EXCHANGE RATE ? Help Give Feedback bongo 2 Demand -20 -15 -10 -5 0 10 15 20 QUANTITY OF DOLLARS (Billions) A+ Summarize the effects of a budget deficit by filling in the following table. Real Interest Rate Real Exchange Rate Trade Balance Effects of a Budget Deficit Grade It Now Save & Continue Continue without saving