7. (10 pts) The University of Michigan publishes the Consumer Sentiment index. This is an empirical way to measure consumer attitudes and expectations and is used to evaluate economic trends and prospects. This index is a leading indicator of future consumer spending. The latest published Index signaled that consumer are very optimistic about their future spending pattern. (10 pts) Use the loanable funds model to determine the net effect of this increase in consumer optimism on the country's real interest rate and real exchange rates