Question: Can you type the answer for me? Your given the following set of information: Desired consumption is Cd = 2000 + 0.9Y - 100,000r -

Can you type the answer for me?

Can you type the answer for me? Your given the following set

Your given the following set of information: Desired consumption is Cd = 2000 + 0.9Y - 100,000r - G. Desired investment is Id = 1000 - 45,000r. Real money demand is Md/P = Y - 6000i. Other variables are ne = 0.03, G = 500, Y_bar = 1000, and M = 2100. Based on this information, calculate the following: i. Find the equilibrium values of the real interest rate, consumption, investment, and the price level. [3 mark] ii. Suppose government purchases decline to 400. What happens to the variables listed in part (i)? [1 mark] iii. Suppose government purchases rise to 600. What happens to the variables listed in part (i)? [1 mark]

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