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Business, 12.12.2020 17:00 cici72

6. Consider an economy described by the following equations: Y = C + I + G
Y = 5,000 G = 1,000 T = 1,000
C = 250 + 0.75(Y − T) I = 1,000 − 50 r.
a. In this economy, compute private saving, public saving, and national saving.
b. Find the equilibrium interest rate.
c. Now suppose that G rises to 1,250. Compute private saving, public saving, and national saving.
d. Find the new equilibrium interest rate.

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6. Consider an economy described by the following equations: Y = C + I + G
Y = 5,000 G = 1,00...

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