The Table Above Gives a Nation's Investment Demand and Saving

Multiple Choice

$\begin{array}{lllll}&\text { Investment } & \text { Private saving } & \text { Net taxes }& \text { Government expenditures }\\\text { Real interest rate } & \text { (billions of } & \text { (billions of } & \text { (billions of } & \text { (billions of } \\\text { (percent per year) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) }\\\hline 3 & 60 & 20 & 40 & 20 \\4 & 50 & 30 & 40 & 20 \\5 & 40 & 40 & 40 & 20 \\6 & 30 & 50 & 40 & 20 \\7 & 20 & 60 & 40 & 20 \\\hline\end{array}$
The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures.
- The loanable funds market is in equilibrium when the real interest rate is

A) 4 percent.
B) 7 percent
C) 3 percent
D) 5 percent.
E) 6 percent.