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

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The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. Real The quantity of loanable funds demanded increases by $2.0 trillion at each real interest rate Loanable funds Loanable funds demanded (percent supplied interest rate and the quantity of loanable funds supplied increases by $1.0 trillion per year) (trillions of 2012 dollars per year) at each interest rate. 6.5 6.5 If , at the same time the government budget becomes a deficit of $1.0 trillion, what 6.0 7.0 are the real interest rate, the quantity of loanable funds, investment, and saving? 5.5 7.5 > >> Answer to 1 decimal place. 5.0 8.0 4.5 8.5 4.0 9.0 3.5 9.5 The real interest rate is percent a year. The quantity of loanable funds is $ trillion, investment is $ trillion, and saving is $ trillion. There crowding out in this situation because O A. is; the deficit increases the real interest rate, which decreases investment Activate Windows

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