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Using the values listed below, and assuming that the real interest rate equals 4, calculate equilibrium level aggregate saving. Autonomous Consumption Expenditure (C bar) =

Using the values listed below, and assuming that the real interest rate equals 4, calculate equilibrium level aggregate saving.

Autonomous Consumption Expenditure (C bar) = 3

Autonomous Investment (I bar) = 5

Fixed Government Spending (G bar) = 2

Fixed Taxes (T bar) = 2

Autonomous Net Exports (NX bar) = 1

mpc = 0.6

c = 0.08

d = 0.4

x = 0.1

Financial Frictions (f bar) = 0

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