Given the following on a closed economy. C = 40 + 0.8Yd I= 55 – 200, C= consumption I= Investment G = government spending T = Taxes G= 20 T= 20 %3D %3D 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

Given the following on a closed economy. C = 40 + 0.8Yd I= 55 – 200, C= consumption I= Investment G = government spending T = Taxes G= 20 T= 20 %3D %3D 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

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 5PA

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Given the following on a closed economy.C = 40 + 0.8Yd C= consumptionI = 55 – 200r I= InvestmentG = 20 G = government spendingT = 20 T = TaxesYe = 400 Ye = National Incomer = rate of interestDetermine the following:a. The equilibrium level of consumptionb. The level of investmentc. The level of interest rated. The level of Private savingse. The level of Public savingsf. The level of national savings
Given the following on a closed economy.C = 40 + 0.8Yd C= consumptionI = 55 – 200r I= InvestmentG = 20 G = government spendingT = 20 T = TaxesYe = 400 Ye = National Incomer = rate of interestTo be solved are the following subparts; d. The level of Private savingse. The level of Public savingsf. The level of national savings
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Consider an economy described by the following equations: Y = C + I + G AND, Y = 20,000; G = 4,000; T = 4,000; C = 1000 + 0.80(Y − T); : I= 2,500 – 120r. national saving AND the equilibrium real interest rate equal: Select one: a. national saving 2200 AND the equilibrium real interest rate 2.5%. b. national saving 2500,AND the equilibrium real interest rate 2%. c. national saving 4000 AND the equilibrium real interest rate 1.5%. d. national saving 3200 AND the equilibrium real interest rate 2.5%.
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Given the following on a closed economy.C = 40 + 0.8Yd C= consumptionI = 55 – 200r I= InvestmentG = 20 G = government spendingT = 20 T = TaxesYe = 400 Ye = National Incomer = rate of interest Determine the following:a. The level of Private savingsb. The level of Public savingsc. The level of national savings
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