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The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule when the government's budget is balanced. Real interest rate
The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule when the government's budget is balanced.
Real interest rate
(percent per year) 4 5 6 7 8 9 10
Loanable funds demanded
(trillions of 2007 dollars per year) 8.0 7.5 7.0 6.5 6.0 5.5 5.0
Loanable funds supplied
(trillions of 2007 dollars per year) 8.0 8.5 9.0 9.5 10.0 10.5 11.0
Consider Table If the government's budget becomes a deficit of $1.0 trillion, what is the quantity of private saving and investment?
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