Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment G = 20 G = government spending T = 20 T = Taxes Ye = 400 Ye = National Income r = rate of interest Determine the following: a. The equilibrium level of consumption b. The level of investment c. The level of interest rate d. The level of Private savings e. The level of Public savings f. The level of national savings

Q: Question 1 Given the following on a closed economy. Question 2 C = 40 + 0.8Yd I = 55 – 200r G = 20…

A: Since you have asked multiple subparts we would answer the first three for you. To get the answers…

Q: 2. We have the following information on the economy: - Aggregate consumption is $1,000 when…

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Q: Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I= Investment I = 55 – 200 G…

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Q: Given the following on a closed economy. C = 40 + 0.8Yd I= 55 - 200 C= consumption I= Investment G =…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.