Question: Consumption Function: C t = 17.2 + 0.7(Yd) t Investment Function: I t = 24 -100r t Real Demand for Money: L t = 6Y

Consumption Function: Ct= 17.2 + 0.7(Yd)t

Investment Function: It= 24 -100rt

Real Demand for Money: Lt= 6Yt-1400r

Net Exports Schedule: NXt= 8 - 4et

Government Spending: G0= 36

Tax Collections: T0= 36

World Interest Rate: r0= 0.15

Price Level: P0= 4

Domestic Money Supply: M0= 2520

Assume further that the economy is currently at the long-run equilibrium.

Find and Graph the equilibrium level of output, consumption, investment, net exports, interest rates and exchange rate.

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