Question
Suppose GDP is $10,000, taxes are $1500, Consumption is $6000, and Government Spending is $1700. Assuming this economy is closed. Investment function is given by
Suppose GDP is $10,000, taxes are $1500, Consumption is $6000, and Government Spending is $1700. Assuming this economy is closed. Investment function is given by I=3300-100 r where r is real interest rate and expressed as a percentage. Calculate private saving, public saving, investment and the equilibrium real interest rate.
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Financial Accounting
Authors: C Thomas,
12th Edition
007760086X, 9780077600860
