An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by C^d = 3000 - 2000r + .10Y
I^d = 1000 - 4000r
Where Y is output and r is the real interest rate. The real interest rate that clears the good market is equal to

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The Answer of An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by C^d = 3000 - 2000r + .10Y I^d = 1000 - 4000r Where Y is output and r is the real interest rate. The real interest rate that clears the good market is equal to A) 1.25%. B) 2.50%. C) 8.33%. D) 25.00%.

An Economy Has Full-Employment Output of 5000