Assume the economy is described by the following equations: C=2000+0.7(YT) 1=400+0.2Y-3000 r G=1500 XM=1000-0.1Y T=-200+0.3Y Given a real interest rate of 4 percent, determine how the increased government spending from 1,500 to 2,000 is funded: A(SI) 1219.595 X A(XM) -121.95 Assume that the economy is described by the following equations: C=200+0.7(YT) 1=400+0.2Y-3000 r G=150 XM=1000-0.1Y T=-200+0.3Y Suppose the government increased expenditure from 150 to 200. Find the new IS curve and calculate: government spending multiplier 2.39 X change in savings 25.6098