2. The Daisy-land's economy is described as follows: Y=C+I+G; Y=10,000; G=2,000; T-3,000; C-2,000+0.5 (Y-T); I=3,000-150r. a. In this economy, compute private saving, public saving, and national saving. b. Find the equilibrium interest rate. c. Now suppose that G is increased by 1,000. Compute private saving, public saving, and national saving.
2. The Daisy-land's economy is described as follows: Y=C+I+G; Y=10,000; G=2,000; T-3,000; C-2,000+0.5 (Y-T); I=3,000-150r. a. In this economy, compute private saving, public saving, and national saving. b. Find the equilibrium interest rate. c. Now suppose that G is increased by 1,000. Compute private saving, public saving, and national saving.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Xr
![Q2
2. The Daisy-land's economy is described as follows:
Y=C+I+G; Y=10,000; G-2,000; T-3,000; C-2,000+0.5 (Y-T); I=3,000-150r.
a. In this economy, compute private saving, public saving, and national saving.
b. Find the equilibrium interest rate.
c. Now suppose that G is increased by 1,000. Compute private saving, public saving, and
national saving.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4109924-af11-46f1-b9da-ad86e570ff0a%2F83094f44-f9fa-440a-87ba-e9367658ab8c%2Fdg4ehqu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q2
2. The Daisy-land's economy is described as follows:
Y=C+I+G; Y=10,000; G-2,000; T-3,000; C-2,000+0.5 (Y-T); I=3,000-150r.
a. In this economy, compute private saving, public saving, and national saving.
b. Find the equilibrium interest rate.
c. Now suppose that G is increased by 1,000. Compute private saving, public saving, and
national saving.
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