6. Consider a closed economy characterized by the equations below: C-5+0.5( Y-T), I = 5 + 0.2Y - 251, G=5, Md /P = 5+ 0.3Y - 0.61, MS /P = HS/P, where C is aggregate consumption; Y is aggregate real income; I is aggregate investment; T is aggregate taxes; G is government spending; i is the nominal interest rate; M d is money demand; M's is money supply; P is the price level; H s is the supply of central bank money. a) Solve for the equilibrium in the goods market assuming an interest rate of 2%. What is the fiscal multiplier in this economy? [10 points] b) What is the money multiplier in this economy? [10 points] c) Assume an interest rate of 2%. What is the level of the fiscal multiplier if the marginal propensity to consume is 0.6 and investment adjusts by 0.3 for every unit change in output? Discuss the lessons the differences in results between a) and c) carry for policy makers. 175%