2. Economists in Funlandia, a closed economy, have collected the following information about the economy for a particular year: Y = 10000, C = 6000, T = 1500 and G = 1700. (a) What is the amount of private saving? (b) What is the amount of public saving? (c) What is the amount of national saving? (d) Suppose that the amount of investment in the economy, I, relates to the real interest rate r in the following manner: I = 3300 – 100r. What is the level of r so that all the saving in the economy goes into investment?

2. Economists in Funlandia, a closed economy, have collected the following information about the economy for a particular year: Y = 10000, C = 6000, T = 1500 and G = 1700. (a) What is the amount of private saving? (b) What is the amount of public saving? (c) What is the amount of national saving? (d) Suppose that the amount of investment in the economy, I, relates to the real interest rate r in the following manner: I = 3300 – 100r. What is the level of r so that all the saving in the economy goes into investment?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 9PA

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