1. Given the equations of an economy:

C= 10 + 0.75 Yd where C stands for consumption and Yd stands for disposable income

T=0.2 Y where T stands for Tax and Y for income

G=230, where G stands for Government expenditure

I=280-6i where I stands for Investment and i for interest

L=0.4Y-4i, where L stands for the demand for real balances

M=800, where M stands for nominal money supply

P=2, where P stands for the price level

1. Calculate the budget surplus and
2. If government spending were to increase by 10, what would be the change in the rate of interest, the level of investment and the level of income?