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An economy has fullemployment output of 6,000. Government purchases, G: are 1:000. Desired consumption and desired investment are Cd = 3,800 2:000r + 0.20Y, and
An economy has fullemployment output of 6,000. Government purchases, G: are 1:000. Desired consumption and desired investment are Cd = 3,800 2:000r + 0.20Y, and r\" = 1,200 4000:: where Y is output and ris the real interest rate. a. Find an equation relating desired national saving: 8d, to r and Y. 3d: 1000 + 2000 r+ 34003
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