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Economists in Pakland, a closed economy, have collected the following information about the economy for a particular year: Y = Rs.10,000 C = Rs.6,000 T

Economists in Pakland, a closed economy, have collected the following information about the economy for a particular year:

Y= Rs.10,000

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:

  1. Private saving= ?
  2. Public saving= ?
  3. National saving= ?
  4. Investment=?
  5. The equilibrium real interest rate= ?
  6. If the government increases taxesto Rs.1,800, calculate private saving= ?

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