An economy has full-employment output of 6,000. Government purchases, G, are 1,000. Desired consumption and desired investment are cd=3,800-2,000r+0.25Y, and = 1,200-3,000r. where Y is output and r is the real interest rate. a. Find an equation relating desired national saving, s, to rand Y. Sd=+r+y

An economy has full-employment output of 6,000. Government purchases, G, are 1,000. Desired consumption and desired investment are cd=3,800-2,000r+0.25Y, and = 1,200-3,000r. where Y is output and r is the real interest rate. a. Find an equation relating desired national saving, s, to rand Y. Sd=+r+y

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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