Use the IS-LM model as well as the quantity equation to solve the following problem. Autonomous consumption is 10. The marginal propensity out of disposable income Y d = Y T is 0.5. The difference between disposable income Y d and total income Y are taxes, given by T = 20. (Note: we did not consider taxes in the IS-LM model in class, so this is a slight extension). Government spending is G = 20. Investment, as a function of real interest rates r (measured in percent) are I = 40 5r. For example, if the real interest is 2%, then investment is 30. Inflation is 2%, so that i = r 2. The price level is P = 1. The velocity of money is given by V = (i/10) 0.6, where the nominal interest rate i is measured in percent. For example, if the nominal interest rate is 2%, then the velocity of money is 0.8. Money supply is M s = 100. 1. Calculate the IS curve, and state it per explicitly writing output as a func- tion of nominal interest rates, Y = YIS (i)