Refer to the Table Below to Answer the Following Question

Multiple Choice

Refer to the table below to answer the following question.
Table 7.3.3
-1Table 7.3.3 shows the demand for loanable funds schedule and the private supply of loanable funds schedule when the government's budget is balanced.If the Ricardo- Barro effect occurs, and if the government budget deficit is $2.0 trillion, the real interest rate is _______ percent a year and the quantity of investment is _______ trillion.

A) 3.0; $7.5
B) 5.0; $7.0
C) 5.0; $5.0
D) 9.0; $7.0
E) 7.0; $6.0