Consider two large open economies, the home economy and the foreign economy. In the home country, the following relationship holds: C = 320 + 0.4(Y -T) -200rW I = 150 - 200rW Y = 1000; T = 200; G = 275 In the foreign country, the following relationship holds: Cf = 480 + 0.4 (Yf - Tf) -300rW If = 225 - 300r W Yf = 1500; Tf = 300; Gf = 300 What is the equilibrium interest rate in the international capital market? 0.2(Refer to Question 22) Suppose that in the home country government purchases increase by 50 to 325. Taxes also increase by 50 to keep the deficit from increasing. What is the change in the value of national saving in the home country? Use total differentiation to answer the question. 30(Continuation Question 23) What is the change in the value of the current account balance in the home country? Use total differentiation to answer the question. 20