LIDLCII Real Interest Rate 8% re 6% USA * Supply 8% 6% 3% Not enough information Demand Q of LF Suppose that after the change illustrated, people in China begin saving more money in American assets. Which of the following is a reasonable interest rate that would ensue from this new change?

Real Interest Rate 1₂ 1. 4 FIGURE 25-2 1 11 12 13 -10 Quantity of Investment and Saving (5) Refer to Figure 25-2. Suppose national saving is reflected by NS, and investment demand is reflected by Now suppose the government implements a policy that encourages investment. What is the effect in th market for financial capital? Select one: a. National saving shifts to NS₁, investment demand shifts to 1₁D, and the quantity of national saving rises t b. There is no effect on NS or ID and the quantity of national saving supplied remains at I". c. National saving shifts to NS₁, and the quantity of national saving supplied rises to 12. d. Investment demand shifts to 1₁D and the quantity of national saving supplied rises to 1₁. e. Investment demand shifts to 1₁D, national saving shifts to NS₁, and the quantity of national

Just TRUE & FALSE

Given that a country will analyze the total benefit of its oil supply-demand in two periods of time by using the following data: Period I Deman curve: P = -0.2 Q₁ + 210 Suply curve: P = 0.04 Q₁ + 30 Interest rate : 10%, Oil reserve : 3.6 billion barrels of oil Units: P in USD, Q in million barrel Period II Deman curve: P = -0.2 Q₂ +210 Suply curve: P = 0.05 Q₂ + 30 Find the efficient allocation! (Q₁, Q₂, P₁, P₁, NB₁, NB₂, TNB), draw a graphical illustration!