Please. solve the fellewing exercise: 7. This question explores IS and FX equilibria in a numerical example. a. The consumption function is C = 1.5 + 0.75 (17 T). Mat is the marginal propen- sity to consume MPC ? What is the marginal propensity to save MP3? 1). The trade balance is T3 = 5(1 [1/E]) 0.25(Y 8). What is the marginal propensi ty to consume foreign goods MPCF? What is the marginal propensity to consume home goods MPCH F' c. The investment function is I = 2 103?. What is investment when the interest rate If is equal to 0.10 =10%? d. Assume government spending is G. Add up the four components of demand and write down the expression for D. e. Assume forex market equilibrium is given byi=([1fE] 1) + 0.10, where the two for- eign return terms on the right are expected depreciation and the foreign interest rate. What is the foreign interest rate? What is the expected future exchange rate?J