Desired consumption and investment are Cd = 4000 - 4000r + 0.20Y; Id = 2400 - 4000r. As usual, Y is output and r is the real interest rate. Government purchases, G, are 2000.
d. Given the consumption function, what the value of the MPC?
e. Given the saving function you derived in part a, what’s the value of the slope of the saving curve?
f. Given the saving function you derived in part a and the investment function, what’s the value of the slope of the IS curve?