Consider the following economy: Desired consumption: Cd = 600 + [0.50x (Y T)] - 55r Desired investment: Id = 430 - 50r Real money demand: L = 0.4Y- 901' Full-employment output: )7 = 2,190 Expected ination: are = 0.05 In this economy the government always has a balanced budget, so T = G, where T is total taxes collected. a. Suppose that T = G = 140 and that M = 4,300. Use the classical lS-LM model to determine the equilibrium value of the real interest rate. (Hint: In the classical model output always equals its full-employment level.) The equations are: l8: Y= 2,200 - 210r 1 LM:Y =11+1O,750[E] +225!" Real rate of interest, r = D (Enter your response rounded to two decimal places.) Consumption = D. (Enter your response rounded to one decimal place.) Investment = D. (Enter your response rounded to one decimal place.) Price. P = D. (Enter your response rounded to two decimal places.)