Sallyjoe2079 Sallyjoe2079

18-04-2024
Business

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Assume that GDP (Y) is 5000. Comsumption (C) is given by the equation C= 1000 + 0.3 (Y-T). Investment (I) is given by the equation I= 1500-50r, where r is the real interest rate in percent. Taxes (T) are 1000 and government spending (G) is 1500.
What are the equilibrium values of C, I, and r?

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