Assume an economy in which: (i) there are no exports and no imports, (ii) investors always want to spend $200 billion, or I = 200, (iii) government spends $500 billion and tax revenue is $200 billion, (iv) consumption is a linear function of disposable income, C=100+0.8Yd At the equilibrium income level (3200) calculate private saving, and explain briefly the relationship between private saving and planned investment?

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