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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

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 operating under a balanced government budget.

Real Interest RateNational SavingDomestic InvestmentNet Capital Outflow
(Percent)(Billions of dollars)(Billions of dollars)(Billions of dollars)
75025-15
64535-10
54045-5
435550
330655
2257510

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 (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market.

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Market for Loanable Funds 10 O Demand 8 6 Supply REAL INTEREST RATE -+ 4 Equilibrium 2 0 + 0 20 40 60 80 100 QUANTITY OF LOANABLE FUNDSNet Capital Outflow 10 A 8 NCO 6 Eqm. NCO REAL INTEREST RATE 4 2 -20 -15 -10 -5 0 5 10 15 20 NET CAPITAL OUTFLOW (Billions of dollars)Market for Foreign-Currency Exchange 10 A Initial Supply 8 6 Supply with Deficit REAL EXCHANGE RATE A 2 Demand -20 -15 -10 -5 0 5 10 15 20 QUANTITY OF DOLLARS (Billions)

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