Question 2. (17 points) Suppose that Y=C + I + G in a closed economy and GDP (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y - T). Investment (I) is given by the equation I = 2,000 - 100r, where r is the real rate of interest in percent. Taxes (T) are 500 and government spending (G) is also 500.

a. (9 points) What are the equilibrium values of C, I, and r?

b. (8 points) What are the values of private saving, public saving, budget deficit, and national saving?