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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
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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