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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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