Suppose that the following equations describe the relationship between shares of spending in GDP (Y) and the interest rate (R), measured in decimal fractions (that is, R = .05 means that the interest rate is 5 percent). 
(A)Use algebra to determine the value of the interest rate and the share of spending in GDP.
(B)Do the calculation again for a government share of 15 percent rather than 20 percent.
Correct Answer:
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