Assignment 2: Savings and Investment
Prepare a two- to three-page analysis by answering the questions below. Be sure to cite your references using APA format.
Assume that the officials in Ecoland have compiled the following information about their economy for last year:
Y = 10,000
C = 6,000
T = 1,500
G = 1,700
The government uses the following equation for the investment function:
I = 3,300 – 100r
Where r = equal to Ecoland’s real interest rate.
Calculate, then explain, the following:
Private saving
Public saving
National saving
Investment
The equilibrium real interest rate
Prepare a two- to three-page analysis by answering the questions below. Be sure to cite your references using APA format.
Assume that the officials in Ecoland have compiled the following information about their economy for last year:
Y = 10,000
C = 6,000
T = 1,500
G = 1,700
The government uses the following equation for the investment function:
I = 3,300 – 100r
Where r = equal to Ecoland’s real interest rate.
Calculate, then explain, the following:
Private saving
Public saving
National saving
Investment
The equilibrium real interest rate