Y= C + I + G Y= 5000 C= 250+ 0.75 Yd, Yd= Y-T I = 1000 - 50r G= T= 1000 1) compute the private, public and national savings 2)Find the equilibrium...

Y= C + I + G

Y= 5000

C= 250+ 0.75 Yd, Yd= Y-T

I = 1000 - 50r

G= T= 1000

1) compute the private, public and national savings

2)Find the equilibrium interest rate.

3)Now suppose that G rises to 1250. Compute private saving, government/public

saving, and national saving.

4)Determine the new equilibrium interest rate