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Find the level of desired investment in the economy

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Reference no: EM132667882

An economy has full-employment output of 6,000. Government purchases, G, are 1,200. Desired consumption and desired investment are:

Cd = 3600-2000r+0.10Y, and
ld = 1200-4000r,

Where Y is output and r is real interest rate.

Suppose that the real interest rate is r=0.15. Assuming that output equals full-employment output, what is the level of desired investment in the economy? Round your answer to at least 2 decimal places.

Reference no: EM132667882

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