Question 23 Use the information below to answer the folowing questions Show all work 10.cat 8pt;Total = 18 points) Goods Market Money Market FORE M6000 1057-1,000 P-4 fos C = 100-0.8/4-7) 1 - 900-3,000 G = 500, T2300 T3 = 400/1-4/5) -0.2017-200 TEO al Find the home economy's equilibrium interest rate, and the equilibrium te consumption investment, trade balance and change rate at the home economisculin b) Given that the Home monetary authority implements a contractionary monetary policy to reduce the money supply to 1000 find the home out equilibrium levels of output, consumption, interest rate, investment change rate and made balance. Show your work and report your answers in the following table M2400 M1000 Home equilibrium att Consumption Home Interest rate Investment Exchange rate Tentoonde Show Work c) Use the IS-LM-FX graph, and lustrate in words how this change in money supply affects the economy. On your graph, label the following, values of the equilibrium home output, interest exchange rate, and domestic return both for M - 4000, and M 1000 Work and Graph: Provide appropriate economic Intultion behind the direction of changes in the home economy's output, consumption, investment, interest rate, trade balance, and exchange rate. Explain if the changes follow the associated theory taught in class. Question 23 Use the information below to answer the folowing questions Show all work 10.cat 8pt;Total = 18 points) Goods Market Money Market FORE M6000 1057-1,000 P-4 fos C = 100-0.8/4-7) 1 - 900-3,000 G = 500, T2300 T3 = 400/1-4/5) -0.2017-200 TEO al Find the home economy's equilibrium interest rate, and the equilibrium te consumption investment, trade balance and change rate at the home economisculin b) Given that the Home monetary authority implements a contractionary monetary policy to reduce the money supply to 1000 find the home out equilibrium levels of output, consumption, interest rate, investment change rate and made balance. Show your work and report your answers in the following table M2400 M1000 Home equilibrium att Consumption Home Interest rate Investment Exchange rate Tentoonde Show Work c) Use the IS-LM-FX graph, and lustrate in words how this change in money supply affects the economy. On your graph, label the following, values of the equilibrium home output, interest exchange rate, and domestic return both for M - 4000, and M 1000 Work and Graph: Provide appropriate economic Intultion behind the direction of changes in the home economy's output, consumption, investment, interest rate, trade balance, and exchange rate. Explain if the changes follow the associated theory taught in class