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Assume that the officials in Ecoland have compiled the following information 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 saving* Public saving* National saving* Investment* The equilibrium real interest rate
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The demand schedule in the first market is Q1=100-0.5P1, where P1 is the price of the product and Q1 is the amount sold in the market. In the seconds market, the demand is Q2=140-P2, where P2 is the price of the product and Q2 is the amount sold i..
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