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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 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...
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