What are the new equilibrium values of c

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Question: Assume that GDP Y) is 5,000. Consumption (C) is given by the equation C = 1,000 + 0.3(Y _ T) Investment (D) is given by the equation [ = 1,500 50r, where r is the real interest rate in percent: Taxes (T) are 1,000 and government spending (G) is 1,500. What are the equilibrium values of C, I,andr? What are the values of private saving, public saving; and national saving? Now assume there is a technological innovation that makes business want to invest more It raises the investment equation to 2,000 50r. What are the new equilibrium values of C, [, and r? What are the new values of private saving, public saving, and national saving?'

Reference no: EM133268274

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