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The table given below shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. Real Interest

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The table given below shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. Real Interest rate (% per year) Loanable fund demanded Loanable fund supplied Trillian of 2002 S) Trillian of 2002) 4. 8.5 55 5 8.0 6.0 6 75 65 7 7.0 7.0 a 6.5 75 9 6.0 8.0 5.5 10 3.5 a If the government has a budget surplus of $1 trillion what are the real interest rate, the quantity of investment, and the quantity of private saving? Is there any crowding out in this situation? b If the government has a budget deficit of $1 trillion what are the real interest rate, the quantity of investment, and the quantity of private saving? Is there any crowding out in this situation? If the government has a budget deficit of $1 trillion and the Ricardo Barro effect occurs, what are the real interest rate and the quantity of investment

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