7. During a year in which the real price index is 250, the interest rate is 12, and real disposable income per capita is $3500 what is your forecast for new car sales using the multiplicative model? Derive a 95 percent confidence interval around this forecast. 8. Use your multiplicative model to analyze the following policies designed to increase new car sales: a) If the Federal Reserve lowers interest rates from 4 to 2.5 how will this affect car sales in percentage terms? b) If simulative fiscal policy in U. S. increases per capita income by 5 percent how will this affect car sales in percentage terms? Extra Credit (up to 5 points): Given your forecast above there is a 10 percent chance that car sales will be less than or equal to what level? (Hint: Use the standard error of the forecast and the fact that the errors are approximately normally distributed)