Consider an economy described by the following equations: Y=C + I +G Y=7,000 G=4000 T=2,000 C=150+0.75(Y-T) I=1,000-50r c. Now suppose the G rises by 1,000. Compute private saving, public saving, and national saving and show a graphical representation of your answer.
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Consider an economy described by the following equations:
Y=C + I +G
Y=7,000
G=4000
T=2,000
C=150+0.75(Y-T)
I=1,000-50r
c. Now suppose the G rises by 1,000. Compute private saving,
national saving and show a graphical representation of your answer.
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