Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment G = 20 G = government spending T = 20 T = Taxes Ye = 400 Ye = National Income r = rate of interest Determine the following: a. The equilibrium level of consumption b. The level of investment c. The level of interest rate d. The level of Private savings e. The level of Public savings f. The level of national savings
Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment G = 20 G = government spending T = 20 T = Taxes Ye = 400 Ye = National Income r = rate of interest Determine the following: a. The equilibrium level of consumption b. The level of investment c. The level of interest rate d. The level of Private savings e. The level of Public savings f. The level of national savings
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 9WNG
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Given the following on a closed economy.
C = 40 + 0.8Yd C= consumption
I = 55 – 200r I= Investment
G = 20 G = government spending
T = 20 T = Taxes
Ye = 400 Ye = National Income
r = rate of interest
Determine the following:
a. The equilibrium level of consumption
b. The level of investment
c. The level of interest rate
d. The level of Private savings
e. The level of Public savings
f. The level of national savings
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d. The level of Private savings
e. The level of Public savings
f. The level of national savings
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