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Suppose you have the following information about a closed economy:(Chapter 4-5) C=5+0.5(Y-T) I=15-50r Y=30 T=10 G=5 a.Whataretheequilibriuminterestrate,levelofsavings,andinvestment the economy is a closed economy? How do
Suppose you have the following information about a closed economy:(Chapter 4-5)
C=5+0.5(Y-T)
I=15-50r
Y=30
T=10
G=5
a.Whataretheequilibriuminterestrate,levelofsavings,andinvestment the economy is a closed economy? How do things change if the economy becomes a smallopeneconomyandtheworldinterestrateis 5%?Showallofthis graphically.
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