Use the table below to answer the following questions.
Table 23.2.3
The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule.

-Consider Table 23.2.3. If planned saving decreases by $1.0 trillion at each real interest rate, what is the new equilibrium real interest rate?
A) 2 percent a year
B) 5 percent a year
C) 2.5 percent a year
D) 3.5 percent a year
E) There is no new equilibrium real interest rate.
Correct Answer:
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Q106: When government saving is negative,
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