Consider a small open economy with a floating exchange rate described by the following equations:

Y = 400 + 5G - 4T + 5NX - 200r (IS curve)

Y = 250r - 100 + 2(M/P) (LM curve)

NX = 240 - 120ewhere e is the exchange rate

r* = 4.0 per cent(international interest rate)

The price level (P) is fixed at 3.0, M = 300, G = 280 and T =200.

a.Determine the equilibrium level of Y in the small open economy.Y =_______

b.What is the equilibrium value of NX?NX = ______

c.What is the equilibrium exchange rate, e?e = _______(1 d.p.)

d.If the level of national saving is 260, what is the level of domestic investment? I = _________