Business, 07.04.2020 16:54 robert7248

Consider an economy described as follows: Y=C+ I+G Y = 8000 G = 2500 T = 2000 C = 1000 + (2/3)*(Y-T) I = 1200 – 100r a. In this economy, compute private saving, public saving, and national saving. b. Find the equilibrium interest rate. c. Now suppose that G is reduced by 500. Compute private saving, public saving, and national saving. d. Find the new equilibrium interest rate.

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Consider an economy described as follows: Y=C+ I+G Y = 8000 G = 2500 T = 2000 C = 1000 + (2/3)*(Y-T)...

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