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Use the following information to answer questions 21-25.GDP ( Y ) is 10,000. Consumption ( C ) . is given by the equation C =

Use the following information to answer questions 21-25.GDP (Y) is 10,000. Consumption (C).is given by the equationC= 1,000 + 0.75(Y-T). Investment (I) is given by the equationI= 1,000 - 100r, whereris the real interest rate in percent. Taxes (T) are 2,000 and government spending (G) is 2,200.

Equilibrium interest rate (r) can be found by setting:

Select one:

A.

S=I

B.

Y=C+I+G

C.

Both (a) and (b)

D.

None of the above

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