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Suppose that investors and savers become pessimistic about the future state of the economy because of recent data on the labor market. Consequently, the demand

Suppose that investors and savers become pessimistic about the future state of the economy because of recent data on the labor market. Consequently, the demand for investment changes by 5 trillion and the supply of savings changes by 2.5 trillion. The market for savings and investment. Real Interest Rate (% per year) Investment (trillions of 2009 dollars) Savings (trillions of 2009 dollars) 2 15.5 8.0 4 14.0 9.0 6 12.5 10.0 8 11.0 11.0 10 9.5 12.0 The new equilibrium interest rate is % and the new level of saving and investment is $ trillion

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