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Short Answer Questions 1 Assume thatGDP (nis 6,000. Consumption (C) isgiven by the equation d=600 T). Investment rhisgi +0.60 equation / 2,000- 100r, where r is the real rate of interest in percent. Taxes (T) are 500 and government spending G) is also 500. a. What are the equilibrium values of C, I, and r? b. What are the values of private saving, public saving, and national saving? c. If government spending rises to 1,000, what are the new equilibrium values of C,I, and ?
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