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Consider a simple economy which is characterized by the following behavioral equations: C = 100 + 2/3YD I = 120 G = 250 T =
Consider a simple economy which is characterized by the following behavioral equations:
C = 100 + 2/3YD
I = 120
G = 250
T = 200
Y = 800
Where C=Consumption spending; YD=disposable income; I=investment spending; G= government spending; and T=taxes paid minus government transfers received by consumers. Remember that YD = Y T). (
a) Use the above information to compute:
private saving (Spr) , public saving (Spb) , national saving (Sn)
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