2. Question 2 assumes the same values as question 1 except now planned investment depends upon the interest rate. C =200+ .6(Y-T) T =200 G =200 Assume that planned investment (IPlanned) varies with the interest rate (r) as follows: I Planned 5 200 a. Calculate equilibrium GDP for interest rates of 15, 10 and 5 percent. (Hint: use the formula for equilibrium GDP to calculate GDP). b. Use your answers to part a to sketch the IS curve. Your IS curve should show numerical values for at least two points. c. Assume that the Federal Reserve cuts the interest rate from 10 percent in period 1 to 5 percent in period 2. Use the information above to calculate the following variables. Note that the interest rate should be expressed as an integer rather than a decimal. Period 1 Period 2 Change d. Suppose your model also included net exports. What effect would the Fed's interest rate cut have on net exports? Why