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If at a Given Real Interest Rate Desired National Saving

Question 178

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If at a given real interest rate desired national saving is $120 billion, domestic investment is $84 billion, and net capital outflow is $56 billion, then at that real interest rate in the loanable funds market there is a


A) surplus.The real interest rate will fall.
B) shortage.The real interest rate will fall.
C) shortage.The real interest rate will rise.
D) surplus.The real interest rate will rise.

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