An economy has full-employment output of 6,000. Government purchases, G, are 1,000. Desired consumption and desired investment are cd=3,800-2,000r+0.25Y, and = 1,200-3,000r. where Y is output and r is the real interest rate. a. Find an equation relating desired national saving, s, to rand Y. Sd=+r+y

if consumers' disposable income increases due to a permanent tax cut - isn't it correct to say that consumption will definitely increase but the extent to which it does depends on the marginal propensity to consumer and save. Therefore the effect on private saving is ambiguous as T decreases but C increases.

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22. What could have caused the Investment function to move from I1 to I2? 23. Assuming that the Investment function moves from I1 to I2, and assuming the market rate of interest in at 15%, by how much would investment spending decrease?

Suppose the incoming Biden administration permanently increases taxes and government purchases by equal amounts. 1)What will be the impact (if any) on output in the short run? 2)What will be the impact on the economy’s normal real interest rate (r*) and normal investment (I*, which is the same as normal saving, S*)?

Exercise 5.2 Given the intertemporal production possibilities frontier to the right. Point A represents a production combination of present and future goods. Using the point drawing tool, show a production combination consistent with a decrease in the real interest rate. Label this point 'B'. Carefully follow the instructions above and only draw the required object. Selected: Point tool * Delete Clear Futurn Consumption ? • FC₂ (0,9.93) ........... A PC Present Consumption Q Q G Question Help ▼ O

Please answer the all parts don't leave last part please it's a request. Thank you

At an aggregate output level of $400 billion what is aggregate savings?

] In the loanable funds market model, assuming everything else is constant, which curve (supply of funds or demand for funds) is affected if there is an increase in national saving?  How will equilibrium real interest rate and equilibrium quantity of loans change?

Consider the following functions for consumption and investment: C = 1,000 + (2/3)*(Y – T) and I = 1,200 – 100*r. Furthermore, Y = 8,000, G = 2500, T = 2,000. Compute private, public, and national savings for this economy, and find the equilibrium real interest rate (r). Assume that G declines by 500 units. How will it change your answers in part (a)? What happens to the national savings, given everything else, if the public decides to consume less out of their disposable income (assume that the propensity of consume falls by 10 percent)? Given your answer in part (c), what happens to investment and real interest rate? Answer all four.