Question 2. Consider an economy described as follows: Y=C+I+G Y = 6000 G = 1500 T = 1000 C=950 +0.75(Y-T) I= 1000-60r (a

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Question 2 Consider An Economy Described As Follows Y C I G Y 6000 G 1500 T 1000 C 950 0 75 Y T I 1000 60r A 1 (20.34 KiB) Viewed 37 times

Question 2. Consider an economy described as follows: Y=C+I+G Y = 6000 G = 1500 T = 1000 C=950 +0.75(Y-T) I= 1000-60r (a) In this economy, compute private saving, public saving, and the national saving. (b) Find the equilibrium interest rate. (c) Now suppose that G is increased to 1800. Compute private saving, public saving, and national saving. (d) Find the new equilibrium interest rate.