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Find an equation relating desired national saving

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Reference no: EM131344832

1. In an economy, desired consumption and investment are Cd =4000- 4000r+0.20YId =2400 - 4000rY is output and r the real interest rate. Government spending, G, is 2000.

a. Find an equation relating desired national saving Sd to r and Y.

b. What value of the real interest rate clears the goods market when Y=10000?

Reference no: EM131344832

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