Consider an economy where the natural rate of unemployment rate is 5% and real GDP at full employment is $3.50 billion. Consumers' spending behavior is described by the equation: C = 150 +0.75DI, while firms investment behavior is described by the equation I = 300 +0.2Y - 750r. Trade is allowed and currently imports are defined by the equation IM = 250 + 0.27. In 2016, exports is fixed at $300 million and government spending is fixed at $800 million. Furthermore, in the same year, tax rate is 20% and the interest rate is 8%.

Consider that in 2017, the government decides to increase government spending to $1000 million. Also consider that the government decides to pay for the increased government spending by increasing interest rate to 10% at the same time. Assume that all other spending behaviors and rates remain the same.

What is the level of investment (in millions of dollars) in 2017