Suppose Economist in England, a closed economy, have collected the following information about the economy for a particular year: GDP equals 10.000 Consumption equals 6.000 Tax revenue equals 1.500 Government purchases equals 1.700 The economist 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, public saving, national saving, investment, and the equilibrum interest rate.

Suppose Economist in England, a closed economy, have collected the following information about the economy for a particular year: GDP equals 10.000 Consumption equals 6.000 Tax revenue equals 1.500 Government purchases equals 1.700 The economist 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, public saving, national saving, investment, and the equilibrum interest rate.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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