Use the Table Below to Answer the Following Questions

Multiple Choice

Use the table below to answer the following questions.
Table 23.3.6
The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule when the government's budget is balanced.

-Consider Table 23.3.6. If the Ricardo-Barro effect occurs, and if the government's budget becomes a deficit of $2.0 trillion, what is the real interest rate?

A) 4 percent a year
B) 5 percent a year
C) 6 percent a year
D) 6.5 percent a year
E) 7 percent a year