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1. Suppose an economy is described by the consumption function C=1,100+.8(Y-T), I= 2,000-200r, T=1,000, G=1,300, Y=15,000....

1. Suppose an economy is described by the consumption function C=1,100+.8(Y-T), I= 2,000-200r, T=1,000, G=1,300, Y=15,000. What is the equilibrium real interest rate? 2. Consider the following data for a closed economy: Y = $20 trillion C = $12 trillion T = $6 trillion Spublic = $2 trillion A. What is the level of private savings for this economy? B. What is the level of Government Purchases for this economy? C. What is the level of investment for this economy?

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