Consider an open economy described by a classical model as follows: Consumption: C = 300 + 0.5Y - 200r Investment: / = 200 - 300r Government Expenditure: G = 100 Net Exports: NX = 150 - 0.1Y - 0.5e Real exchange Rate: e = 20 + 600r Natural rate of output: Y = 900 The real interest rate (r) does not deviate from the international real interest rate. 1. What are the equilibrium values of the real interest rate, the real exchange rate, consumption, investment, and next exports? 2. Do the results indicate a trade surplus or trade deficit? 3. Suppose that government expenditure increases to 132. a. Numerically solve for the equilibrium values of the real interest rate, the real exchange rate, consumption, investment, and next exports. b. Graphically compare the real exchange rate and net exports in parts I and 2 of this question, and provide an economic intuition