The total output of the closed economy Moneyland is 10,000. Consumption is explained by the function C = 3,800 + 0.7T - 150r, where r is the real interest rate. Investment (I) is given by the equation, I = 1,500 + 50r. Taxes (T) are 1,000 and government spending (G) is 3,500. What are the values of consumption, investment, and real interest rate?

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The Answer of The total output of the closed economy Moneyland is 10,000. Consumption is explained by the function C = 3,800 + 0.7T - 150r, where r is the real interest rate. Investment (I) is given by the equation, I = 1,500 + 50r. Taxes (T) are 1,000 and government spending (G) is 3,500. What are the values of consumption, investment, and real interest rate?

The Total Output of the Closed Economy Moneyland Is 10,000