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 - 500E
6. CF= -10r
7. CF=NX
8. G= 1,500
9. T= 1,000

whereNXis net exports,CFis net capital outflow, and E is the real exchange rate.

Solve these equations for the equilibrium values ofC,I,NX,CF,r, and E. (Hint: You can reduce the total number of equations to two through repeated substitutions. These two equations will be functions ofrand E. Check your work by seeing that all of these equations balance, given your answers.)