just need answer for the" Based on the given information, provide answers to the following questions: a b c d "

2. Consider the following model of the economy - C=125+0.75(YT) - I=200100r - G=100 - NX=1600.5 - Y=900 (a) Show the relationship between real interest rate and real exchange rate, for any given level of income and interpret your result ( 5 points) (b) Assuming world real interest r=0.1, what is the equation of the net capital outflow (SI) curve? What does you result imply? (5 points) (c) Show the relationship between real exchange rate () and real output; state the rationale for the sign of the effect of Y on . (5 points) (d) What is equilibrium real exchange rate if output is at full-employment level and is equal to 180 . (5 points) 250+0.1Y500r; Full employment: Y=3000; Nominal money supply: M=15000; and r=0.1. Also assume the domestic Economy (Canada) - a small open economy has the following: Real money demand: PMd=320+0.5Y700r; Nominal Money Supply: M=7000; and Full employment income as given above: Y=900; - Based on the given information, provide answers to the following questions: (a) Determine P and P8 (6 points) (b) Compute the nominal exchange rate both under the law of one price assumption and without (4 points) (c) Show the effect of a one percent increase in domestic money supply on the nominal exchange rate ( 3 points) (d) Show the effect of a one percent increase in foreign money supply on the nominal exchange rate ( 2 points) 2. Consider the following model of the economy - C=125+0.75(YT) - I=200100r - G=100 - NX=1600.5 - Y=900 (a) Show the relationship between real interest rate and real exchange rate, for any given level of income and interpret your result ( 5 points) (b) Assuming world real interest r=0.1, what is the equation of the net capital outflow (SI) curve? What does you result imply? (5 points) (c) Show the relationship between real exchange rate () and real output; state the rationale for the sign of the effect of Y on . (5 points) (d) What is equilibrium real exchange rate if output is at full-employment level and is equal to 180 . (5 points) 250+0.1Y500r; Full employment: Y=3000; Nominal money supply: M=15000; and r=0.1. Also assume the domestic Economy (Canada) - a small open economy has the following: Real money demand: PMd=320+0.5Y700r; Nominal Money Supply: M=7000; and Full employment income as given above: Y=900; - Based on the given information, provide answers to the following questions: (a) Determine P and P8 (6 points) (b) Compute the nominal exchange rate both under the law of one price assumption and without (4 points) (c) Show the effect of a one percent increase in domestic money supply on the nominal exchange rate ( 3 points) (d) Show the effect of a one percent increase in foreign money supply on the nominal exchange rate ( 2 points)