2. (22 marks in total) Consider a world with only two countries (i.c., two large open coonomies), the home country (H) and the foreign country (F). Output equals its full- employment level in each country. In the home country the following relationships hold: desired consumption : Car - 500 + 0.7(Ym -To) - 100r" desired investment : In - 800 -3007 full - employment output : Yo = 3000 tax : Ty - 600 government spending : Gar = 600 In the foreign country the following relationships hold: desired consumption : OF = 400 + 0.6(YF - TF) - 200p desired investment : IF - 1000 - 400r" full - employment output : YF = 5000 lar : TF - 300 government spending : GF = 300 (a) (4 marks) Derive the current account balance equations for the home country and the foreign country and solve for the world equilibrium interest rate