Question: Consumption function, C= 500+0.7 (Y-T); where, Y=4500 Tk and T=500 Tk and G=400 Tk (a) Calculate disposable income, private, public and national savings? (b) Investment

Consumption function, C= 500+0.7 (Y-T); where, Y=4500 Tk and T=500 Tk and G=400 Tk

(a) Calculate disposable income, private, public and national savings?

(b) Investment function I (r) = 1200 - 40r, find out the equilibrium real interest rate?

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