Question
5. Consider an economy, Y=I+G+C where; Y=5000; G=1000; T=1000; C=200+0.70 (Y-T) and I=1000-15r (all the figures are in taka) (a) Calculate the value of consumption
5. Consider an economy, Y=I+G+C where; Y=5000; G=1000; T=1000; C=200+0.70 (Y-T) and
I=1000-15r (all the figures are in taka)
(a) Calculate the value of consumption demand?
(b) Find out the private, public and national savings?
(c) Find out the market interest rate?
(d) If G reduces to 800 taka, what will be new market interest rate?
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The American Economy
Authors: Walter Greason, William Gorman
1st Edition
1524902675, 9781524902674
