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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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