Economists in Funlandia, which has a closed economy, have collected the following information about the economy for a particular year: YY = = 10,00010,000 CC = = 6,0006,000 TT = = 1,5001,500 GG = = 1,7001,700 The economists also estimate that the investment function is: II = = 3,300−100r3,300−100r where rr is the country’s real interest rate, expressed as a percentage. Complete the following table by calculating private saving, public saving, national saving, investment, and the equilibrium real interest rate. Component Amount Private Saving Public Saving National Saving Investment Equilibrium Real Interest Rate
Economists in Funlandia, which has a closed economy, have collected the following information about the economy for a particular year: YY = = 10,00010,000 CC = = 6,0006,000 TT = = 1,5001,500 GG = = 1,7001,700 The economists also estimate that the investment function is: II = = 3,300−100r3,300−100r where rr is the country’s real interest rate, expressed as a percentage. Complete the following table by calculating private saving, public saving, national saving, investment, and the equilibrium real interest rate. Component Amount Private Saving Public Saving National Saving Investment Equilibrium Real Interest Rate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Economists in Funlandia, which has a closed economy, have collected the following information about the economy for a particular year:
| YY | = = | 10,00010,000 |
| CC | = = | 6,0006,000 |
| TT | = = | 1,5001,500 |
| GG | = = | 1,7001,700 |
The economists also estimate that the investment function is:
| II | = = | 3,300−100r3,300−100r |
where rr is the country’s real interest rate, expressed as a percentage.
Complete the following table by calculating private saving, public saving , national saving, investment, and the equilibrium real interest rate.
|
Component
|
Amount
|
|---|---|
| Private Saving |
|
| Public Saving |
|
| National Saving |
|
| Investment |
|
| Equilibrium Real Interest Rate |
|
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