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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:
- Private saving= ?
- Public saving= ?
- National saving= ?
- Investment=?
- The equilibrium real interest rate= ?
- If the government increases taxesto Rs.1,800, calculate private saving= ?
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