Multiple Choice
Use the table below to answer the following question.
Table 7.3.1
-Table 7.3.1 shows the market for loanable funds in Northland.The government budget is balanced.If the government moves from a balanced budget to a surplus of $20 billion, the new equilibrium occurs at a real interest rate of _______ percent and the equilibrium quantity of loanable funds is _______.
A) 5.5; $90 billion
B) 5.5; $110 billion
C) 6.5; $90 billion
D) 6; $120 billion
E) 6.5; $110 billion
Correct Answer:

Verified
Correct Answer:
Verified
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