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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:
Calculate the PV of the costs of her education and the PV of her benefits from the MBA.
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