Ans: E. 4? percent; $700 billion
The above table has the private demand for loanable funds and the private supply of loanable funds schedules. If the government budget surplus is $200 billion, and there is no Ricardo-Barro effect, the equilibrium real interest rate is ________ and the equilibrium quantity of loanable funds is ________.
A. 4? percent; $500 billion
B. 8? percent, $500 billion
C. 6? percent; $600 billion
D. 8? percent; $700 billion
E. 4? percent; $700 billion
Economics
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