(b). Consider an economy described by the following equations (. Y =C +I+G Y = 5000; G = 1000; T = 1000; C = 250 + 0.75 (Y-T); I = 1000-50r i) In this economy: (1) Compute national savings (2) Find equilibrium interest rate.

(b). Consider an economy described by the following equations (. Y =C +I+G Y = 5000; G = 1000; T = 1000; C = 250 + 0.75 (Y-T); I = 1000-50r i) In this economy: (1) Compute national savings (2) Find equilibrium interest rate.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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