Consider an economy described as follows: a. In this economy, compute private saving, public saving, and national

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Consider an economy described as follows:image text in transcribed

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

b. Find the equilibrium interest rate.

c. Now suppose that G is reduced by 500.
Compute private saving, public saving, and national saving.

d. Find the new equilibrium interest rate.

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Macroeconomics

ISBN: 9781464182891

9th Edition

Authors: N Gregory Mankiw

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