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The table sets out the data for an economy when the government's budget is balanced Real interest rate lpercent per year) Loanable funds supplied funds

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The table sets out the data for an economy when the government's budget is balanced Real interest rate lpercent per year) Loanable funds supplied funds trillions of 2009 dollars 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.5 6.0 6.5 7.0 7.5 8.0 8.5 10 a. Calculate the equilibrium real interest rate, investment, and private saving b. If planned saving increases by $0.5 trillion at each real interest rare, explain the change in the real interest rare c. If planned investment increases by $1 trillion at each real interest rate, explain the change in saving and the real interest rate The table sets out the data for an economy when the government's budget is balanced Real interest rate lpercent per year) Loanable funds supplied funds trillions of 2009 dollars 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.5 6.0 6.5 7.0 7.5 8.0 8.5 10 a. Calculate the equilibrium real interest rate, investment, and private saving b. If planned saving increases by $0.5 trillion at each real interest rare, explain the change in the real interest rare c. If planned investment increases by $1 trillion at each real interest rate, explain the change in saving and the real interest rate

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