Consider the simplified national income model:

Y = C + I............(1)

Where Y is national income, C is consumption, and I is investment. Consumption is determined by a behavioral equation, which in this problem takes the form

C=3000+ .75Y........(2)

Where Y and C are endogenous variables and Investment is exogenous, and, initially we assume

I =1000...................(3)

(2-b) Determine theoverallchange (comparative statics analysis) of the equilibrium level of national income (Y) and consumption

(2-c) ifnew I = 600, decreased by 400.