Question 7 The table below shows aggregate values for a hypothetical economy. Real GDP is equal to

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Question 7

The table below shows aggregate values for a hypothetical economy. Real GDP is equal to potential GDP. Figures are billions of dollars.

Potential GDP 950

Net tax revenue 125

Government purchases 140

Desired investment 10

Desired consumption 800

7.1 What is the level of private saving?

7.2 What is the level of public saving?

7.3 What is the level of national saving?

7.4 Is the interest rate at its equilibrium level? How do you know?

Related Book For answer-question

Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Posted Date: Aug 08, 2020 10:19 AM

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Question 7 The table below shows aggregate values for a hypothetical economy. Real GDP is equal to

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Question 7

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1 Level of private investment Governmentpurchaseinvestment Level of p... View the full answer

Introduction to Corporate Finance What Companies Do

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