The above table has the private demand for loanable funds and the private supply of loanable funds schedules
If the government budget surplus is $200 billion, and there is no Ricardo-Barro effect, the equilibrium real interest rate is ________ and the equilibrium quantity of loanable funds is ________.
A) 8 percent; $700 billion
B) 4 percent; $700 billion
C) 4 percent; $500 billion
D) 8 percent, $500 billion
E) 6 percent; $600 billion
B
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Suppose $1 will buy 150 yen in January and 200 yen the following December. This change could have occurred if the
A) demand curve for dollars shifted rightward. B) demand curve for dollars shifted leftward. C) supply curve of dollars shifted rightward. D) demand curve for yen shifted rightward.
If the demand for a country's currency increases, the currency
A) appreciates. B) depreciates. C) stays the same. D) could either appreciate, depreciate, or stay the same.