Table 23.3.3 -Refer to Table 23.3.3. the Table Shows the Demand for Shows

Multiple Choice

Table 23.3.3

-Refer to Table 23.3.3. The table 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) 5.0; $5.0
B) 9.0; $7.0
C) 3.0; $7.5
D) 5.0; $7.0
E) 7.0; $6.0