Multiple Choice
If at a given real interest rate desired national saving were $140 billion, domestic investment were $90 billion, and net capital outflow were $40 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 real interest rate would fall.
Correct Answer:
Verified
Correct Answer:
Verified
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