2,000. C- 1,000 + 2/3(Y- T). 1-1,200-100r. n this economy, compute private saving, public saving, and national saving. How much is the marginal propensity to consume? 1. 2. Find the equilibrium interest rate.

2,000. C- 1,000 + 2/3(Y- T). 1-1,200-100r. n this economy, compute private saving, public saving, and national saving. How much is the marginal propensity to consume? 1. 2. Find the equilibrium interest rate.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 5PA

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Question

Consider an economy described as follows:
Y = C+1+G
Y= 8,000.
G= 2,500.
T 2,000.
C- 1,000 + 2/3(Y-T).
1-1,200-100r.
'n this economy, compute private saving, public saving, and national saving.
How much is the marginal propensity to consume?
1.
2.
3.
Find the equilibrium interest rate.

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