Essay
The total output of the closed economy Moneyland is 10,000. Consumption is explained by the function C = 3,800 + 0.7T - 150r, where r is the real interest rate. Investment (I) is given by the equation, I = 1,500 + 50r. Taxes (T) are 1,000 and government spending (G) is 3,500. What are the values of consumption, investment, and real interest rate?
Correct Answer:
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Y = 10,000
C = 3,800 + 0. 7T -150r
I = 1...View Answer
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Correct Answer:
Verified
C = 3,800 + 0. 7T -150r
I = 1...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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