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Business, 05.05.2020 06:35 hailey5129

Consider an economy described as follows: Y 5 C 1 I 1 G. Y 5 8,000. G 5 2,500. T 5 2,000. C 5 1000 1 2/3(Y2T ). I 5 1,200 2 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 5 C 1 I 1 G. Y 5 8,000. G 5 2,500. T 5 2,000. C 5 1000 1...
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