Question: Consumption ( C ) : C = 5 0 + 0 . 7 5 ( Y T ) C = 5 0 + 0 .

Consumption (C): C=50+0.75(YT)C =50+0.75(Y - T)C=50+0.75(YT)
Investment (I): I=20020rI =200-20rI=20020r
Net Exports (NX): NX=20050eNX =200-50eNX=20050e
Money Market (M/P): MP=Y40r\frac{M}{P}= Y -40rPM=Y40r
Government Spending (G): G=200G =200G=200
Taxes (T): T=200T =200T=200
Money Supply (M): M=3000M =3000M=3000
Price Level (P): P=3P =3P=3
World Interest Rate (r):* r=5r^*=5r=5

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