A closed economy has income Y of 1200, consumption C of 800, government purchases G of 200, and taxes T of 150. Investment is determined by the equation / = 300 – 20r. a. Calculate national saving. National saving = 200 b. Calculate public saving. Public saving = -50 c. Calculate private saving. Private saving = 250 d. Calculate equilibrium interest rate. Equilibrium interest rate = e. If the government increases its purchases to 240, what is the new equilibrium interest rate? New equilibrium interest rate =

A closed economy has income Y of 1200, consumption C of 800, government purchases G of 200, and taxes T of 150. Investment is determined by the equation / = 300 – 20r. a. Calculate national saving. National saving = 200 b. Calculate public saving. Public saving = -50 c. Calculate private saving. Private saving = 250 d. Calculate equilibrium interest rate. Equilibrium interest rate = e. If the government increases its purchases to 240, what is the new equilibrium interest rate? New equilibrium interest rate =

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 5PA

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Please answer fast please arjent help please ASAP pls answer fast