1.Assume that GDP (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y - T) - 100r. Investment (I) is given by the equation I = 2,000 - 100r, where r is the real rate of interest in percent. Taxes (T) are 500 and government spending (G) is also 500.

a.Derive the equation for national saving.Is the saving schedule vertical or upward sloping? What are the equilibrium values of C, I, and r?