申論題

II. Essay Question (20 points)
1. Assume that GDP (Y) is 5,000. Consumption (C) is given by the equation C = 1,200 + 0.3(Y – T) – 50r, 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 1,500. (10 points)

A.What are the equilibrium values of C, I, and r?