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A country's domestic supply of saving, domestic demand for saving for purposes of capital formation, and supply of net capital inflows are given by the
A country's domestic supply of saving, domestic demand for saving for purposes of capital formation, and supply of net capital inflows are given by the following equations:
S= 1,380 + 2,000r
I= 2,000 4,000r
KI= -100 + 6,000r
Assuming that the market for saving and investment is in equilibrium, find the current values fornational saving, capital inflows, domestic investment, and the real interest rate.
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