Desired consumption, desired investment, and government spending in a closed economy are Cd = 260 - 100r
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Question:
Desired consumption, desired investment, and government spending in a closed economy are
Cd = 260 - 100r + 0.2Y
Id = 100 - 300r
G = 220
What value of the real interest rate clears the goods market when Y = 600? (Please show your work)
Related Book For
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
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