The table shows the demand for loanable funds schedule and the supply of loanable funds schedule when the government budget is balanced. Real Loanable funds Loanable funds demanded supplied If the govemment budget surplus is $1.0 trillion, what are the real interest rate, the quantity of investment, and the quantity of private saving? Interest rate (percent per year) (illions of 2009 dollars per year) 8.0 6.0 7.5 7.0 6.5 6.5 7.0 15 If the govermment budget surplus is $1.0 trillion, the real interest rate is percent a year. 7.5 If the government budget surplus is S1.0 trillion, the quantity of investment is $ tilion, and the quantity of private saving is $ trillion. 6.0 8.0 5.5 8.5 10 5.0 90

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