Find the equilibrium interest rate

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Reference no: EM13149792

Consider an economy described by the following equations: y= C+I+G Y=5,000 G=1,000 T=1,000 G=250 +.75(Y-T) I=1,000-50r a. In this economy, compute private saving, public saving, and national saving. b. Find the equilibrium interest rate c. Now suppose that G rises to 1,250. Compute private saving, public saving, and national saving. d. Find the new equilibrium interest rate.

Reference no: EM13149792

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