PROBLEM SET $4$ DataDICSIC $+$ IGC$+$I$+$GXNTE$050-50501005015050200100100050150502005025020015050502005025050300300200100502505030050350400250150503005035050400500300200503505040050450$DI disposable income, C Consumption, S Savings, I Investment, G Government Expenditure, XN Net exports, and TE Total Equilibrium. Please note that TE is also referred to as GDP or Income. So TE or Y $=$ C $+$ I $+$ G $+$ XN$.$ Therefore if Disposable income $($DI$)$ is $$0$ and consumption, $($ C $)$ is $$50,$ how much is your saving $($S$)1.$Calculate S$,$ C $+$ I, C $+$ I $+$ G$,$ C $+$ I $+$ G $+$ XN for each level of disposable income$\mathrm{.}2.$Calculate equilibrium using all sectors $($TE$)\mathrm{.}3.$What would the new equilibrium be if I was increased to $100$ instead of $50?$ What would this mean to the economy?Assume the reserve ratio is $10\%$Formula: Potential Expansion Deposits $=1/$Reserve Ratio x Excess ReservesNote: ER is Excess reserves given by Total Reserves Required ReserveRequired Reserves $=$ Total Deposits x reserve ratioCounty National BankALReserves $20,000100,000$ DepositsER $=\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ Potential Expansion $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_2.$FED $($Federal Reserve Bank$).$ buys a $$10,000$ bond from bank. What is the potential impact on MS $($Money Supply$)?3.$FED. buys a $$10,000$ bond from bank customer. What is the impact on MS$?$Is there a difference between $2$ and $3?$ Why?$4.$Assume money supply rule. Growth in Q is $5\%$; growth in V is $2\%.$ How much should the MS grow to keep P constant? Assume MV $=$ PQ $($note: what should the value of M and P be to balance the equation MV $=$ PQ$)$