Calculate the equilibrium real interest rate and investment

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Reference no: EM13243450

Prepare a two- to three-page analysis by answering the questionsbelow. Be sure to cite your references using APA format.

Assume that the officials in Ecoland have compiled the following information about their economy for last year:

Y = 10,000
C = 6,000
T = 1,500
G = 1,700

The government uses the following equation for the investment function:

I = 3,300 - 100r

Where r = equal to Ecoland's real interest rate.

Calculate, then explain, the following:

Private saving
Public saving
National saving
Investment
The equilibrium real interest rate

Reference no: EM13243450

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