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