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Suppose the economy of XYZ Country is seeing a change in business sensitivity to interest rates. Currently, its economy is described by the following equations. Y = 3K 3709 K= 50 and L = 50 G= 60 T= 80 I = 120 - 100r C= 40 +0.5(Y-T) Using math, show the returns to scale for XYZ Country's production function, Assuming XYZ Country is a closed economy, what are the equilibrium values of consumption, investment and the interest rate? Suppose that XYZ Country passes some new policies that cause businesses to want to invest more and this changes the investment function to I = 150 - 100r With this new investment function, solve for the equilibrium values of consumption, investment, and the interest rate. Sketch a loanable funds diagram for XYZ Country that shows the effect of the change from part b) to part c) on national saving and investment. Briefly explain the economic intuition behind what is causing the result for consumption between part b) and part c). Suppose the economy of XYZ Country is seeing a change in business sensitivity to interest rates. Currently, its economy is described by the following equations. Y = 3K 3709 K= 50 and L = 50 G= 60 T= 80 I = 120 - 100r C= 40 +0.5(Y-T) Using math, show the returns to scale for XYZ Country's production function, Assuming XYZ Country is a closed economy, what are the equilibrium values of consumption, investment and the interest rate? Suppose that XYZ Country passes some new policies that cause businesses to want to invest more and this changes the investment function to I = 150 - 100r With this new investment function, solve for the equilibrium values of consumption, investment, and the interest rate. Sketch a loanable funds diagram for XYZ Country that shows the effect of the change from part b) to part c) on national saving and investment. Briefly explain the economic intuition behind what is causing the result for consumption between part b) and part c)