The questions a

QUESTION 5 For an economy, you are given the following values: Y = 9000, G=3500, T=3000 C = 1000+(2/3)(Y-T) 1 = 1500-100r where r is the interest rate. a. Compute private, public and national savings b. Find the equilibrium interest rate. c. If Goverment spending falls to 3000, how does the eq. interest rate change? Compute and show your answer graphically as well