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Question 02:
Consider an economy described by the following equations:
Where, Y = 6,000, G = 2,000, T = 2,000
C = 300 + 0.50 (Y-T)
I = 2,000 – 60r
In this economy, compute:
a. Private saving
b. Public saving
c. National saving
d. The equilibrium interest rate
e. The amount of equilibrium level of investment

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