An economy is characterized by the following desired consumption and investment functions:

C=543+0.72Y and I=752

Part (a): Calculate the equilibrium level of GDP and the multiplier for this economy. Round your answer for the multiplier to 3 decimal places. Example: 0.001

Part (b): Suppose the level of desired investment changed to I=731, with no change to desired consumption. What is the new equilibrium GDP level for the economy?

Part (c): Using 1 to 2 sentences, describe how this change to desired investment affects the AE function graphically.

Part (d): Suppose the desired investment levels returns to I=752, but now consumers spend 86 cents of every dollar earned. What is the new equilibrium GDP level for the economy?

Part (e): Using 1 to 2 sentences, describe how this change to consumption habits affects the AE function graphically.