Calculate the equilibrium real interest rate

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Reference no: EM13244851

Assume that the officials in Ecoland have compiled the followinginformation about their economy for last year:

Y = 10,000
C = 6,000
T = 1,500
G = 1,700

The government uses the following equation for the investmentfunction:

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

Reference no: EM13244851

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