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Compute the value of the equilibrium real rate of interest

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Reference no: EM13180323

Yo=1200

Y=C+I+G

C=130+.5(Y-T)

I=(-400)-(10R)

G=150

T=50

1. Compute private savings

2. Compute public savings

3. Compute the value of the equilibrium real rate of interest (R)

4. Suppose G rises from 150 to 200. What is new R?

Reference no: EM13180323

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Compute the value of the equilibrium real rate of interest : Yo=1200 Y=C+I+G C=130+.5(Y-T) I=(-400)-(10R) G=150 T=50 1. Compute private savings 2. Compute public savings 3. Compute the value of the equilibrium real rate of interest (R) 4. Suppose G rises from 150 to 200. What is new R?
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