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categoryاقتصاد عام schoolبكالوريوس event_available2026-07-15

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The table bellow shows the demand for loanable funds schedule and the private supply of loanable funds schedule. Real Interest rate Demand for loanable Supply of loanable funds per year funds (trillions of 2005 (trillions of 2005 dollars dollars per year) per year) 4 2.7 2.1 5 2.6 2.2 6 2.5 2.3 7 2.4 8 9 10 222 2.3 2.2 2.1 2222 2.4 2.5 2.6 2.7 a. If the government's budget is balanced (so there is no budget deficit nor budget surplus), what is the equilibrium real interest rate, the equilibrium the quantity of loanable funds, and the quantity of investment? b. If the government budget surplus is $200 billion, and there is no Ricardo-Barro effect, what are the equilibrium real interest rate, the quantity of private saving, and the quantity of investment? (Hint: you may use the graph) c. If the government budget deficit is $200 billion, and there is no Ricardo-Barro effect, what are the equilibrium real interest rate, the quantity of private saving, and the quantity of investment? Is there any crowding out? (Hint: you may use the graph) d. If the government budget deficit is $200 billion, and there is Ricardo-Barro effect, what are the equilibrium real interest rate, the quantity of private saving, and the quantity of investment? (Hint: you may use the graph)

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