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Economy-wide investment function

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Reference no: EM131750507

Provide answers to each of the following questions. 

1. (Identities, redux) Economists in Anglia, a closed economy, computed the 2016 macroeconomic indicators shown below. (A closed economy, as opposed to an open economy, is one that has no foreign sector.)

Y = 10000

C =   6000

T =   1500

G =   1700

They also identified the economy-wide investment function to be as follows:

I = 3300 - 100 r

Where r is the nation's real rate of interest, expressed as a percentage, e.g., 2%, not as .02.  (This is not the value of r! It is only an example of r.)

Calculate:

  1. Private Saving
  2. Public Saving
  3. National Saving
  4. Investment
  5. Real rate of Interest.

Reference no: EM131750507

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