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Suppose the following equations describe the relationship between the long-run shares of spending in GDP and the interest rate (R), measured in decimal fractions (that

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Suppose the following equations describe the relationship between the long-run shares of spending in GDP and the interest rate (R), measured in decimal fractions (that is, R = 0.05 means that the interest rate is 5 percent) Equations: C/Y* = 0.7 -0.2(R - 05) and L/Y* =0.2-0.8(R -.05) X/Y* = 0-0.95(R - 05) and G/Y* = 2 Use algebra to determine the values of the interest rate and the long-run shares of spending in GDP R = C percentage =% I percentage X percentage -% G percentage=

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