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Suppose that the officials in Ecoland have compiled the following data about their economy for last year:
Y = 10,000C = 6,000T = 1,500G = 1,700
The government uses the following equation for the investment function:
I = 3,300 - 100r
Where r = equal to Ecoland's real interest rate.
Calculate, then explain, the following:
Private savingPublic savingNational savingInvestmentThe equilibrium real interest rate
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