Consider an economy described by the following: C = $3.5 trillion [= $1.3 trillion G = $3.5 trillion T = $3.0 trillion NX = -$1.0 trillion f=1 mpc = 0.75 d = 0.3 x=0.1 2= 1 r=1 A. Derive expressions for the MP curve and the AD curve. (1 point) B. Calculate the real interest rate, equilibrium level of output, consumption, planned investment, and net exports when p = 1. (1 point) C. Suppose Bank of Canada increases to r = 2. Calculate the real interest rate, the equilibrium level of output, consumption, planned investment, and net exports at this new level of r. (1 point) D. Considering that output, consumption, planned investment, and net exports all decreased in part (c), why might the Bank of Canada choose to increase r? (1 point) E. Suppose government spending increases to $4 trillion and p =2. If the Bank of Canada wants to keep output constant, then what monetary policy change should it make? (1 point)