5. What can you conclude should happen to the interest rate? (2 points) 6. Find the function and the value of the equilibrium interest rate, using the conditions you mentioned in (1). (12 points) 7. What is the new value for en? (3 points) 8. Congratulations, you are now in charge of the government! You are in charge of undertaking government policy, for the benet of the people. Someone comes up to you and tells you that the government should be spending more overall. He argues that this would make us all better off, because even if the government increases taxes, it is spending it on the consumers, so it all balances out. Do you agree? (Spoints)