Refer to Table 7.3.6, which shows an economy's demand and supply of loan...
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Table 7.3.6
Real interest rate(percent per year)
Loanable funds demanded(trillions of 2012 dollars)
Loanable funds supplied(trillions of 2012 dollars)
4
6.5
3.5
5
6.0
4.0
6
5.5
4.5
7
5.0
5.0
8
4.5
5.5
9
4.0
6.0
10
3.5
6.5
Refer to Table 7.3.6, which shows an economy's demand and supply of loanable funds schedules when the government's budget is balanced. If the government's budget becomes a deficit of $2.0 trillion and the Ricardo-Barro effect occurs, what is the real interest rate?
