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If at a given real interest rate desired national saving is $200 Billion, domestic investment is $100 dollars, and net capital outflow is $80 Billion,
If at a given real interest rate desired national saving is $200 Billion, domestic investment is $100 dollars, and net capital outflow is $80 Billion, then at that real interest rate in the loanable funds market there is a
surplus. The real interest rate will rise. |
shortage. The real interest rate will fall. |
surplus. The real interest rate will fall. |
shortage. The real interest rate will rise. |
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