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(18 points) Consider the following economy Y = C+ lo+ Go C = a+ by a) (2 point) Write this system of equations as a

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(18 points) Consider the following economy Y = C+ lo+ Go C = a+ by a) (2 point) Write this system of equations as a matrix equation in the form of Ax = b where x = b) (4 points) Use Cramer's rule to solve for equilibrium consumption c) (6 points) Suppose that b E (0,1), use partial derivatives to show an increase in Go would affect C d) (6 points) Use partial derivatives to show a decrease in b would affect C

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