Consider an economy described by the following equations: Y=C + I +G Y=7,000 G=4000 T=2,000 C=150+0.75(Y-T) I=1,000-50r b. Calculate the equilibrium interest rate. c. Now suppose the G rises by 1,000. Compute private saving, public saving, and national saving. d. Calculate the new equilibrium interest rate. For these 3 questions please only show the graphical response

Q: In an economy, the desired consumption and investment functions are given by, cd = 4500+ 0.20Y-4000r…

A: Cd = 4500 + 0.2Y - 4000rId = 2400 - 5000rG= 2100

Q: SHOW CALCULATION

A: Step 1:Step 2:Step 3:

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A: Given that; Y = 8,000G = 2,000T = 1,000C = 250 + 0.75(Y −T )I = 800 − 50r ------------------ C = 250…

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A:

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