2. Consider in a country, 1. In this economy, compute Y = C+I+ G. private saving, Public saving, and national saving. Y - 8,000. 2. Find the equilibrium interest G - 2,500. rate ( r is in %). 3. Now suppose that G is reduced T = 2,000. by 500. Compute private C = 1000 + 2/3(Y-T). saving, public saving, and national saving. I - 1,200 - 100r. 4. Find the new equilibrium interest rate. Later: investment is in a negative 5. What if G increases to 3500, function of interest rate (r). then real interest rate will be