Base your answers to the questions below on the following equation for net exports and parameter values: NX = NXa - nx*Y - u*e Autonomous net exports = 1 trillion Responsiveness of net exports to the real exchange rate = 0.01 trillion Responsiveness of net exports to real income = 0.2 Real income = 5 trillion Real exchange rate = 50

a. Solve for net exports.

b. Is there a trade deficit or a trade surplus? How big is it? c. Suppose income decreased by 0.5 trillion (and all else remained the same). How would the trade deficit or surplus change?