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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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