Private saving in an economy is given by Sv = 100 + 50 r, while gross...
Private saving in an economy is given by Sv = 100 + 50 r, while gross investment is given by the
equation I = 1200 – 50r. The government has a budget deficit of 200 and the country borrows
100 internationally. The inflation rate is 20.... Just use 20, not 0.20 or 20%. What is the value
for the equilibrium real rate of interest, r? What is the value for gross investment?
Homework Answers
Sv=100+50r
I=1200-50r
I=sv
1200-50r=100+50r
1200-100=50r+50r
1100=100r
r=1100/100
=11
Gross investment I=1200-50r
I=1200-50*11
1200-550
=650
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Private saving in an economy is given by Sv = 100 + 50 r, while
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19
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Another economy has private saving given by: Sv 300+5r, and gross investment is given by the equation I = 1200-Sr. Gross tax revenue is 500; government purchases are 300; and net tax revenue is 100. This country is lending 200 internationally. What is the equilibrium real rate of interest? What is the value for transfer payments, T, in #197
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Another economy has private saving given by: Sv 300+5r, and gross investment is given by the equation I = 1200-Sr. Gross tax revenue is 500; government purchases are 300; and net tax revenue is 100. This country is lending 200 internationally. What is the equilibrium real rate of interest? What is the value for transfer payments, T, in #197
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