2,000. C- 1,000 + 2/3(Y- T). 1-1,200-100r. n this economy, compute private saving, public saving, and national saving. How much is the marginal propensity to consume? 1. 2. Find the equilibrium interest rate.

2,000. C- 1,000 + 2/3(Y- T). 1-1,200-100r. n this economy, compute private saving, public saving, and national saving. How much is the marginal propensity to consume? 1. 2. Find the 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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Question

Consider an economy described as follows:
Y = C+1+G
Y= 8,000.
G= 2,500.
T 2,000.
C- 1,000 + 2/3(Y-T).
1-1,200-100r.
'n this economy, compute private saving, public saving, and national saving.
How much is the marginal propensity to consume?
1.
2.
3.
Find the equilibrium interest rate.

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