1. Consider the following economy of Syldavia (a small open economy) Y=C+1+G+NX, NX = S-I Y=8000 G=750 T=750 C=1000+0.75(Y-T) |=1000-100r NX=500-500e r=r* =5 Find the national saving, investment, capital outfow, trade balance and equilibrium exchange rate. Suppose the the Syldavian Government increases government spending to prepare for war from 750 to 1500. Find the national saving, investment, capital outflow, trade balance and equilibrium exchange rate C why is the exchange rate higher when the government spending increases between a) and b)? Suppose the world interest rate drop from r=5 to 2percent (assume government G=750). Find the national saving, investment, trade balance, capital outflow and equilibrium exchange rate. E Is the Syldavian population able to supply funds to its domestic investors in full? Contrast with the other two scenarios