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5. Consider a world with only two countries, which are designated the home country (H) and the foreign country (F). Output equals its full-employment level in each country. You are given the following information about each country: Home Country Consumption: CH = 1m + 0.511.! 5001'" Investment: I\" = 3m 5430f\" Govemnwnt Purchases.- G\" = ESE Full-umploymmt Output: 7\" = 1000 Foreign Country Consumptim; C; = 11'; + {title - HIM Investment: I": ' 251} 201k\" Govermnent Purchases: Gr 2 WI] Fullemployment Output: 1?, = um i. Write national saving in the home country and in the foreign country as functions of the world real interest rate rw. ii. What is the equilibrium value of the world real interest rate? iii. What are the equilibrium values of consumption, national saving, investment, the current account balance, and absorption in each country? 6. Analyze the effects on a large open economy of a temporary adverse supply shock that hits only the foreign economy. Discuss the impact on the home country's national saving, investment, and current account balance and on the world real interest rate. How does your answer differ if the adverse supply shock is worldwide