Multiple Choice
If at a given real interest rate desired national saving is $200 billion,domestic investment is $100 billion,and net capital outflow is $80 billion,then at that real interest rate in the loanable funds market there is a
A) surplus.The real interest rate will rise.
B) surplus.The real interest rate will fall.
C) shortage.The real interest rate will rise.
D) shortage.The real interest rate will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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