7. Assume that the following equations characterize a large open economy: (1) Y = 5,000 (2) Y = C + I + G + NX (3) C = 1 / 2 (Y - T) (4) I = 2,000 - 100r (5) NX = 500 - 500? (6) CF = -100r (7) CF = NX (8) G = 1,500 (9) T = 1,000 where NX is net exports, CF is net capital outflow, and ? is the real exchange rate. Solve these equations for the equilibrium values of C, I, NX, CF, r, and ?. (Hint: You can reduce the total number of equations to two through repeated substitutions. These two equations will be functions of r and ?. Check your work by seeing that all of these equations balance, given your answers.)

7. Assume that the following equations characterize a large open economy: (1) Y = 5,000 (2)Y=C+I+G+NX (3H2: 1/2lYT) (4) I = 2,000 mm (5) NX = 500 5005 (5) CF = 100r (7) CF = NX (3) G = 1,500 (9) T = 1,000 where NX is net exports, CF is net capital outflow, and E is the real exchange rate. Solve these equations for the equilibrium values of C, l, NX, CF, 1', and a. (Hint: You can reduce the total number of equations to two through repeated substitutions. These two equations will bgnions of r and 8. Check your work by seeing that all of these equations balance, given yo r answers.)