Monday

July 28, 2014

July 28, 2014

Posted by **greg** on Saturday, October 20, 2007 at 11:44pm.

QUESTION

Consider an economy described by the following equations:

Y=C+I+G

Y=500

G=1,000

T=1,000

C=250+0.75(Y-T)

I=1,000-50r

a.In this economy, compute private saving, public saving, and national saving.

b. Find the equilibrium interest rate.

c. Now suppose that G rises to 1,250. Compute private saving, public saving,

and national saving.

d. Find the new equilibrium rate.

- macro -
**Matusala**, Sunday, January 27, 2013 at 10:11ama. Private saving= 750; Public saving=0; National saving=500

b. r=5

c.At the new equilibrium The new Private saving= 1000; Public saving=-250; National saving=750

d.The new equilibrium interest rate=5 (same)

**Related Questions**

Maroeconomics - Question 02: Consider an economy described by the following ...

Math - I am stuck on trying to figure out how to do this question. Could someone...

econ--HELP!! - QUESTION Consider an economy described by the following equations...

chemistry - This question I really don't get it. I tried tried tried to figure ...

Statistics - A 50-question true-false exam is given. Each correct answer is ...

Physics - The question is: A small block of ice at 0oC is subjected to 10 g of ...

Economics - Member since: December 21, 2006 Total points: 154 (Level 1) * Best ...

chemistry - My professor never teach us this kind of question before. I don't ...

Math - I need help with the second question: A student is taking a multiple ...

supply and demand - I'm looking for help on the third part of this question. I'...