Consider an economy with the following equations𝑌 =𝐶 + 𝐼 +𝐺 +𝑁𝑋𝑌 = 5,000𝐺 =1,250𝑇 =1,000𝐶 =100 +0.85*(𝑌 -𝑇)𝐼 = 1,000 - 5,000𝑟𝑁𝑋 = 300 - 500𝜀𝑟=𝑟∗ =0.05Note that 𝑟 and 𝑟* are denoted as fractions. For example, 𝑟 = 𝑟* =0.05 means the domestic real interest rate equals the world real interest rate of 5%.Solve for the trade balance.

Suppose that the demand for real money balances is (M / P)d = 5Y − 20r. If the supply of real balances is 400, and the gross domestic product is 100, then the equilibrium interest rate is:2.5.5.7.5.10.

The following equations describe an economy. (Think ofC,I,G, etc., as being measured in billions andias a percentage; a 5 percent interest rate impliesi=5.) \[ \begin{aligned} C & =0.8(1-t) Y \\ t & =0.25 \\ I & =900-50 i \\ \bar{G} & =800 \\ L & =0.25 Y-62.5 i \\ \bar{M} / \bar{P} & =500 \end{aligned} \] a. What is the equation that describes theIScurve? b. What is the general definition of theIScurve? c. What is the equation that describes theLMcurve? d. What is the general definition of theLMcurve? e. What are the equilibrium levels of income and the interest rate?

Consider this economy:C = 100 + 0.5YI = 400 + 0.1Y

Suppose 4.7 Chinese yuan (¥) trade for one (1) Australian dollar ($), the Australian price level equals $0.9 per good, and the Chinese price level equals ¥2.35 per good.What is the real exchange rate in Chinese goods per Australian good, rounded to two decimal points?a.1.80b.0.90c.1.11d.0.56

Country A is a closed economy. The consumption C=150+0.5(Y-T), Government expenditure is 300, Tax is 200, I=180-1200r, (M/P)d=Y-1000r, M=1200, P=2. What is the real interest rate(r) when it is equilibrium level?A.0.2B.0.12C.0.165D.0.178