=+ b. Assume that = 1.5. Calculate the real interest rate, the equilibrium level of output,

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b. Assume that π = 1.5. Calculate the real interest rate, the equilibrium level of output, consumption, planned investment, and net exports.

c. Suppose the Fed increases r to 2. Calculate the real interest rate, the equilibrium level of output, consumption, planned investment, and net exports at this new level of r.

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