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The table shows the demand for loanable funds schedule and the supply of loanable funds schedule when the govemment budget is balanced If the govemment

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The table shows the demand for loanable funds schedule and the supply of loanable funds schedule when the govemment budget is balanced If the govemment budget deficit is $1:0 tralion, what are the real interesh rate, the quantity of investment, and the quarity of private saving? is there any crowding out in this situaton? If the government budget defict is \$1.0 Inlion, the real interest rate is percent a year If the govemment budget defict is $1.0 trillon, the cusnsty of investment is $ trillion, and the quantity of private saving is $ trilich Is there any crowding out in this shuation? A. Yes. The defict increases the real interest rale, which decreases investment. B. No, Investment is $8.0 trilion, which means that it is not beng crowded oul

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