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If at a Given Real Interest Rate Desired National Saving

Question 69

Multiple Choice

If at a given real interest rate desired national saving is $140 billion,domestic investment is $90 billion,and net capital outflow is $60 billion,then at that real interest rate in the loanable funds market there is a


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

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