Business, 19.06.2020 00:57 angoraspinner
In an economy, the desired consumption and investment functions are given by Cd = 1 comma 000 + 0.80Y minus4 comma 000r Id = 1 comma 500minus5 comma 000r where Y is output and r is the real interest rate. Government purchases are G = 2 comma 100. The equation for desired national saving is: Upper S Subscript 1 Superscript dequalsminus3 comma 100 + 0.20Y + 4 comma 000r. Using the condition that at equilibrium, quantity of goods supplied = quantity of goods demanded, determine the real interest rates that clear the goods market when Y = 10,000 and Y = 12,000. When Y = 10,000, the equilibrium rate of interest is: r = nothing%. (Enter your response as a percentage rounded to the nearest integer.)
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In an economy, the desired consumption and investment functions are given by Cd = 1 comma 000 + 0.80...
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