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  3. question 3 consider a closed economy described by the following...

Question: question 3 consider a closed economy described by the following...

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Question 3 Consider a closed economy described by the following equations: Y-C+1+G Y -5,000 G- 1,000 T= 1,000 C 2500.75 (Y T) I 1,000-50*r (3 points) In this economy, compute private saving, public saving, and national saving. (2 points) Find the equilibrium interest rate. (2 points) Draw a graph containing the saving and investment curves for this economy. a. b. c. Show the financial market equilibrium d. (2 points) Now suppose the G rises to 1,250. Compute private saving, public saving, and national saving. (2 points) Find the new equilibrium interest rate. (1 points) On a new graph, draw the investment curve and the new saving curve. Show e. f. the new equilibrium in the financial market
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