As a small open economy, Malaysia economy is influenced by the world price market. We assumed Malaysia has desired national saving of Sd= 20 + 200rw, and desired national investment of Id= 30 - 200rw. The foreign economy has desired national saving of = 40 + 100rw, and desired national investment of = 75 - 400rw.Based on this info, calculate the following:

Where CA is Current Account; For is Foreign; r^w is world interest rate.

a) Calculate the equilibrium values of rw, CA, CAFor, S, I, SFor, and I For.

b) Suppose Sdrises by 45, so that now Sd= 65 + 200rw. Calculate the equilibrium values of rw, CA, CAFor, S, I, SFor, and I For

c) Suppose, with Sdback to Sd= 20 + 200rw, as in part (a), that Idrises by 45, to

Id= 75 - 200rw. Calculate the equilibrium values of rw, CA, CAFor, S, I, SFor, and I For.