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The following graph shows domestic saving (the green curve) and the supply of loanable funds (the orange curve in the fictional country of Shenan, where the real interest rate is 8%. on the graph, use the black point (cross symbol) to indicate the quantity of domestic saving, and use the purple point (diamond symbol) to indicate the quantity of loanable funds supplied. Dashed drop lines will automatically extend to both axes. The quantity of domestic saving is billion and the quantity of loanable funds supplied is billion. Suppose that the market for loanable funds is in equilibrium at a real interest rate of 8%. The quantity of loanable funds demanded in Shenan is billion and the capital inflow to Shenan is billion.

 

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