Assistance with the following a. Consider an economy described by the following equations: Calculate and use a diagram to demonstrate the equilibrium interest rate Y=C + I +G Y=7,000 G=4000 T=2,000 C=150+0.75((Y-T) I=1,000-50r b. If G increased by a 1000 using a diagram please explain and calculate the new equilibrium interest rates.
Assistance with the following a. Consider an economy described by the following equations: Calculate and use a diagram to demonstrate the equilibrium interest rate Y=C + I +G Y=7,000 G=4000 T=2,000 C=150+0.75((Y-T) I=1,000-50r b. If G increased by a 1000 using a diagram please explain and calculate the new equilibrium interest rates.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assistance with the following
a. Consider an economy described by the following equations:
Calculate and use a diagram to demonstrate the equilibrium interest rate
Y=C + I +G
Y=7,000
G=4000
T=2,000
C=150+0.75((Y-T)
I=1,000-50r
b. If G increased by a 1000 using a diagram please explain and calculate the new equilibrium interest rates.
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