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

Question 32

Multiple Choice

 Real interest rate  (percent per year)   Investment  (billions of  Private saving  (billions of  Net taxes  (billions of  Government expenditures  (billions of  2005 dollars)   2005 dollars)   2005 dollars)  360204020450304020540404020630504020720604020\begin{array} { c c c c c } \begin{array} { l } \text { Real interest rate } \\\text { (percent per year) }\end{array} & \begin{array} { c } \text { Investment } \\\text { (billions of }\end{array} & \begin{array} { c } \text { Private saving } \\\text { (billions of }\end{array} & \begin{array} { c } \text { Net taxes } \\\text { (billions of }\end{array} & \begin{array} { c } \text { Government expenditures } \\\text { (billions of }\end{array} \\\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\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 government has a budget


A) surplus of $60 billion.
B) surplus of $20 billion.
C) deficit of $20 billion.
D) deficit of $60 billion.
E) surplus of $40 billion.

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