n year 2018, the government of Qatar spent is 143 billion Qatari Riyal (the national currency of Qatar). The GDP of Qatar in the same year is 1,121 billion Qatari Riyal. Qatar's desired consumption and desired investment during the year can be summarized by the following equations: Cd=1,000-5,000r Id=800-3000r Where Cd is the desired consumption in billions of Qatari Riyal, Id if the desired investment in billions of Qatari Riyal, and r is the real interest rate in decimal form. What is the equilibrium real interest rate r* in %? round to at least 2 decimal places
n year 2018, the government of Qatar spent is 143 billion Qatari Riyal (the national currency of Qatar). The
Cd=1,000-5,000r
Id=800-3000r
Where Cd is the desired consumption in billions of Qatari Riyal, Id if the desired investment in billions of Qatari Riyal, and r is the real interest rate in decimal form.
What is the equilibrium real interest rate r* in %? round to at least 2 decimal places
GDP of an economy(e) refers to the market-value of all final goods(g) and services(s) produced within a domestic-country in a year.
Where, C is consumption, I is investment, G is government expenditure and NX is net export.
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