(Advanced analysis)Answer the question on the basis of the following information for a private closed economy. $\begin{array} { l } S = - 20 + 0.4 Y \ I _ { g } = 25 - 3 i \end{array}$ where S is saving,I_g is gross investment,i is the real interest rate,and Y is GDP. Refer to the information.In equilibrium,the level of saving will be: A) $10. B) $15. C) $20. D) $30.

Question

Quizplus · Accepted Answer

In equilibrium, saving equals investment. So, we have:-20 + 0.4Y = 25 - 3iSolving for Y, we get:Y = 100Substituting this back into the saving equation, we get:S = -20 + 0.4(100) = 10

(Advanced Analysis)Answer the Question on the Basis of the Following S=−20+0.4YIg=25−3i\begin{array} { l } S = - 20 + 0.4 Y \\I _ { g } = 25 - 3 i\end{array}S=−20+0.4YIg​=25−3i​

(Advanced Analysis)Answer the Question on the Basis of the Following $\begin{array} { l } S = - 20 + 0.4 Y \\I _ { g } = 25 - 3 i\end{array}$