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Find the equilibrium interest rate

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Reference no: EM13331237

Consider an economy described by the following equations:

Y = C + I + G

Y = 5,000

G = 1,000

T = 1,000

C = 250 + 0.75( Y - T)

I = 1,000 - 50 r

a) In this economy, compute private saving, public saving, and national saving

b) Find the equilibrium interest rate

Reference no: EM13331237

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