Suppose GDP is $10,000 trillion, taxes are $1,500 trillion, consumption is $6,000 trillion, and government expenditure is $1,700 trillion. Investment is a function of the interest rate such that it is represented by the following equation (in trillions): ? = 3,300 − 100 ∗ ?Where i is the world real interest rate, expressed as a percentage. Us this information to calculate private savings, public savings, national savings, and the equilibrium real interest rate.

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A: Cd = 4500 + 0.2Y - 4000rId = 2400 - 5000rG= 2100

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Q: Assistance with the following question: Consider an economy described by the following equations:…

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