In a closed economy, the gross domestic product is $25,000, consumption is $8,200 and taxes are $3,700. If the national saving is 3,000, if the investment function is represented by I = 3,400-80r, the equilibrium interest rate is: Select one: a. 12% b. 5% c. 3% d. 8% e. None of the answers are correct

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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In a closed economy, the gross domestic product is
$25,000, consumption is $8,200 and taxes are $3,700.
If the national saving is 3,000, if the investment
function is represented by I = 3,400-80r, the
equilibrium interest rate is:
Select one:
a. 12%
b. 5%
c. 3%
d. 8%
e. None of the answers are correct
Transcribed Image Text:In a closed economy, the gross domestic product is $25,000, consumption is $8,200 and taxes are $3,700. If the national saving is 3,000, if the investment function is represented by I = 3,400-80r, the equilibrium interest rate is: Select one: a. 12% b. 5% c. 3% d. 8% e. None of the answers are correct
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