Question: 3 . . Given the following data, answer the following questions: a . In this economy, compute private saving, public saving, and national saving. b

3.. Given the following data, answer the following questions:
a. In this economy, compute private saving, public saving, and national saving.
b. Compute the equilibrium interest rate.
c. Suppose G is increased by 250. Compute private saving, public saving, and national saving.
d. Compute the new equilibrium interest rate.
Y=C+1+G
Y=5000at full employment
G=1000
T =1000
C =250+0.75(y-t)
I =1000-50r
E. Draw the investment saving graph which illustrates this economy with both levels of G.
F. Prove equilibrium in both the goods market and the saving investment market.

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