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19. Private saving in an economy is given by Sv = 200 + 5r, where r is the real rate of interest. Net taxes are

19. Private saving in an economy is given by Sv = 200 + 5r, where r is the real rate of interest. Net taxes are 300 and government purchases are 400, while govt transfer payments are 100. This country lends 200 internationally each year, and investment is given by I = 1200 - 5r. Finally, the inflation rate in this economy is 8%. According to the loanable funds theory of interest, what is the equilibrium value for the real interest rate?

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