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Question 29 of 30 The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced.

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Question 29 of 30 The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. The quantity of loanable funds demanded increases by $1.5 trillion at each real interest rate and the quantity of loanable funds supplied increases by $0.5 trillion at each interest rate. If , at the same time the government budget becomes a deficit of $2.0 trillion, what are the real interest rate, the quantity of loanable funds, investment, and saving? >>> Answer to 1 decimal place. The real interest rate is percent a year. The quantity of loanable funds is investment is trillion, and trillion. There crowding out in this situation because () A. is; the deficit increases the real interest rate, which decreases investment ( B. is no;investment is $7.5 trillion Alexandra Lent 03/16/24 413 PM (2) chn This test: 120 point(s) @ possible This question: 4 point(s) possible Submit test . posl Loanable funds Loanable funds interest rate demanded supplied _ ;':?::;t) (trillions of 2012 dollars per year) } 4 8.0 7.0 | 5 7.5 7.5 6 7.0 8.0 ; 7 6.5 85 i 8 6.0 9.0 9 s 9.5 10 5.0 10.0

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