Due to a drop in consumer confidence, consumers reduce their consumption level, so that the consumption function now becomes: C = 0.2 (Y- T), (d) [2 marks] Compute the new equilibrium output and interest rate in the short run. (e) [2 marks] Compute the Q and m equilibrium investment levels. How does the drop in consumer confidence affect the equilibrium investment level? Explain the intuition behind this change. To give a quick boost to the economy and bring the equilibrium output back to the original level identified in part (c), the central bank decides to launch an expansionary monetary policy by increasing the real money supply. (f) [1 mark] Solve for the required interest rate that can achieve such a recovery. (g) [1 mark] Draw an IS-LM diagram to represent the drop in consumer confidence and the entailing expansionary monetary policy. Label all axes and curves, and mark all the values and equilibrium points appropriately