Consider two large open econOmies, the home economy and the foreign economy. In the home country, the following relationships hold desired consumption, Cd = 320 + 0.4(r r) 2001-\" desired consumption, Id = 150 200W output, Y = 1000 government purchases, G = 275 taxes, T = 200 In the foreign country, the 0110ng relationships hold desired consumption, (3%,, 480 + 0.40%, rpm) 3001-\" desired consumption, I?\" = 225 3001'\" output, Y9, = 1500 government purchases, GPO, = 300 taxes, TED, = 300 (a) (5 marks) What is the equilibrium interest rate in the international capital mar- ket? (b) (5 marks) What are the equilibrium values of consumption, national saving, investment, and the current account balance in each country? (c) (5 marks) Suppose that in the home country, government purchases increase by 50. Taxes also increase by 50 to keep the decit from growing. What is the new equilibrium interest rate in the international capital market? ((21) (5 marks) What are the new equilibrium values of consumption, national sav- ing, investment, and the current account balance in each country