Consider an economy described by the following equations.

Y = C + I + G

Y = 9000

G = 2500, T = 2000

C = 500 + 0.8(Y-T) - 200r

I = 1000 - 200r

The growth rate of real GDP in the economy is 3 percent per year, the money stock grows at 5 percent per year, andVis constant

a)Using the above equations, calculate the equilibrium real interest rater.

b)Using the quantity, find and using the Fisher equation, find the nominal interest ratei.

c)If there is an increases in investment demand, what happens tor,i,S,andI? Illustrate and explain with graph