4. Apply the classical theory. Consider a hypothetical economy described below: Y=C+I+G C = 50+cY - T I = 300 - 20r Y = 2,000 T = 900 G = 1,500 c = 0.6 where Y is output, C is consumption, I is investment, G is government purchases, Tis taxes, and r is real interest rate in percent. a) Calculate private saving, public saving, and national saving.

4. Apply the classical theory. Consider a hypothetical economy described below: Y=C+I+G C = 50+cY - T I = 300 - 20r Y = 2,000 T = 900 G = 1,500 c = 0.6 where Y is output, C is consumption, I is investment, G is government purchases, Tis taxes, and r is real interest rate in percent. a) Calculate private saving, public saving, and national saving.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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