If at a Given Real Interest Rate Desired National Saving

Multiple Choice

If at a given real interest rate desired national saving were $50 billion, domestic investment were $40 billion, and net capital outflow were $20 billion, then at that real interest rate in the loanable funds market there would be a

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