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Economists in Pakland, a closed economy, have collected the following information about the economy for a particular year: Y= Rs.10,500 C= Rs.6,000 T= Rs.1,500 G=
Economists in Pakland, a closed economy, have collected the following information about the economy for a particular year: Y= Rs.10,500 C= Rs.6,000 T= Rs.1,500 G= Rs.1,700 The economists also estimate that the investment function is: I= 3,300 - 100r Where,ris the country's real interest rate, expressed as a percentage. Calculate: a. Private saving. . . . . . . b Public saving. . . . . . . c National saving........ d investment e The equilibrium real interest rate f If the government increases taxes to Rs.1,800, calculate private saving
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