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Consider an economy described by the following:

C=$3.2trillion 

f=0.5

I=$1.3trillion

 mpc=0.75

 G=$2.8trillion 

d=0.4

T=$3trillion 

x=0.15 

NX=$-0.5trillion

A. The simplified expression for the investment function is:

B. The simplified expression for the consumption function is:

C. The simplified expression for the net export function is:

D. An expression for the IS curve is:

E. If the real interest rate is r=1, equilibrium output Ye ____ trillion. (Round your response to one decimal place.)

F. If the real interest rate is r=4, equilibrium output Ye ____ trillion. (Round your response to one decimal place.)

G. If government purchases increase to $3.5 trillion and the real interest rate r=1, equilibrium output Ye_______trillion. (Round your response to one decimal place.)

H. If government purchases increase to $3.5 trillion and the real interest rate r=4, equilibrium output Ye______trillion. (Round your response to one decimal place.)

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