eeee economics

1. Consider the following economy of Syldavia (a small open economy) Y=C+1+G+NX, NX = S-I Y=8000 G=750 T=750 C=1000+0.75(Y-T) |=1000-100r NX=500-500e r=r*=5 a. [5 points] Find the national saving, investment, capital outfow, trade balance and equilibrium exchange rate. b. [ 5 points] Suppose the the Syldavian Government increases government spending to prepare for war from 750 to 1500. Find the national saving, investment, capital outflow, trade balance and equilibrium exchange rate c. [ 2 points] why is the exchange rate higher when the government spending increases between a) and b)? d. [ 5 points] Suppose the world interest rate drop from r=5 to 2percent (assume government G=750). Find the national saving, investment, trade balance, capital outflow and equilibrium exchange rate. e. [ 3 points] Is the Syldavian population able to supply funds to its domestic investors in full? Contrast with the other two scenarios