Refer to the Table Below to Answer the Following Question

Multiple Choice

Refer to the table below to answer the following question.
Table 7.3.5 Table 7.3.5 shows an economy's demand for loanable funds schedule and supply of loanable funds schedule when the government's budget is balanced.If the government budget surplus becomes $2.0 trillion, the real interest rate is percent a year, the quantity of investment is trillion, and the quantity of private saving is _ trillion.
A) 6; $7.5; $5.5 B) 8; $6.5; $6.5 C) 10; $7.5; $5.5 D) 10; $5.5; $7.5 E) 6; $7.5; $7.5
Answer: A
-The government of Greece is running a large budget deficit.With no Ricardo- Barro effect, which of the following events occurs? I.The supply curve of loanable funds shifts leftward.
II.A higher real interest rate crowds out investment.
III.Saving increases.

A) I only
B) II only
C) III only
D) II and III only
E) I, II, and III