Question: The table sets out the data for the Eurozone when the government's budget is balanced. Calculate the equilibrium real interest rate, investment, and private saving.
The table sets out the data for the Eurozone when the government's budget is balanced.
Calculate the equilibrium real interest rate, investment, and private saving.
If planned saving decreases by trillion at each real interest rate, explain the change in the real interest rate.
If planned investment decreases by trillion at each real interest rate, explain the change in saving and the real interest rate.
The real interest rate is percent a year.
Answer to decimal place.
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