Economists in Pakland, a closed economy, have collected the following information about the economy for a particular year: Y = Rs.10,500 C = Rs.6,000 T = Rs.1,500 G = Rs.1,700 The economists also estimate that the investment function is: I = 3,300 - 100r Where, r is the country’s real interest rate, expressed as a percentage. Calculate: Private saving Blank 1 (Write Only numbers in the blank. Do not write plus signs, minus signs, commas, full stops, currency etc.) Public saving Blank 2 (Write Only numbers in the blank. Do not write plus signs, minus signs, commas, full stops, currency etc.) National saving Blank 3 (Write Only numbers in the blank. Do not write plus signs, minus signs, commas, full stops, currency e
Economists in Pakland, a closed economy, have collected the following information about the economy for a particular year:
Y = Rs.10,500
C = Rs.6,000
T = Rs.1,500
G = Rs.1,700
The economists also estimate that the investment function is:
I = 3,300 - 100r
Where, r is the country’s real interest rate, expressed as a percentage. Calculate:
Private saving
Blank 1
(Write Only numbers in the blank. Do not write plus signs, minus signs, commas, full stops, currency etc.)
Blank 2
(Write Only numbers in the blank. Do not write plus signs, minus signs, commas, full stops, currency etc.)
National saving
Blank 3
(Write Only numbers in the blank. Do not write plus signs, minus signs, commas, full stops, currency etc.)
Investment
Blank 4
The equilibrium real interest rate
Blank 5
(Write Only numbers in the blank. Do not write plus signs, minus signs, commas, full stops, currency etc.)
If the government increases taxes to Rs.1,800, calculate private saving
Blank 6
((Write Only numbers in the blank. Do not write plus signs, minus signs, commas, full stops, currency etc.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 6 images
