Multiple Choice
If at a given real interest rate desired national saving would be $50 billion,domestic investment would be $40 billion,and net capital outflow would be $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.
Correct Answer:
Verified
Correct Answer:
Verified
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