ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Concept explainers

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 …
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Please take your time to help me because so many answers are wrong. Help with b, c and d
Consider an economy described by the following equations:
Y=C + I +G
Y=7,000
G=4000
T=2,000
C=150+0.75(Y-T)
I=1,000-50r
a. In this economy, compute private saving, public saving and national saving.

b. Calculate the equilibrium interest rate. include a graph to support answer
c. Now suppose the G rises by 1,000. Compute private saving, public saving, and
national saving. Include a graph to support answer
d. Calculate the new equilibrium interest rate. include a graph to support answer

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