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The following table shows the amount of money people would be willing to demand and supply for different rates of interest: Real rate of interest

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The following table shows the amount of money people would be willing to demand and supply for different rates of interest: Real rate of interest (") Funds demanded ($) Funds supplied ($) 25000 10000 20000 13000 15000 15000 10000 17000 10 5000 20000 What is the equilibrium rate of real interest in this economy, and what will happen at a 10% interest rate? O The equilibrium rate of real interest is 2%; and at a 10% interest, there will be excess demand for funds in the economy! The equilibrium rate of real interest is 2%) and at a 10% interest, there will be excess savings in the economy! " The equilibrium rate of real interest is 6%, and at a 10% interest, there will be excess savings in the economy, The equilibrium rate of real interest is 6%, and at a 10% interest, there will be excess demand for funds in the economy. The equilibrium rate of real interest is 8% and at a 10% interest, there will be excess demand for funds in the economy

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