Goods Market C = 100 + 0.6(Y - T) (Consumption) I = 50 - 0.257 (Investment) G = 200 (Government spending) T = 10 (Taxes) X = 0.2Y* -0.8E (Exports) IM = 0.5E (Imports) Y= C+I+G+X-IM/E (Goods market equilibrium condition) Money Market (M/P) = 0.25Y - 0.75/ (Money demand) (M/P)'= 222 (Money supply) (M/P) = (M/P)' (Money market equilibrium condition) Assume that world income Y* is 100 units, the world interest rate * is 0.1 and the expected future exchange rate E' is 9.16. i. Derive the equations for IS and the LM curves. (3 marks) ii. Calculate the equilibrium levels of output (Y), interest rate (), nominal exchange rate (E) and the net exports (NX). (3 marks) iii. Suppose that the government increases public spending (AG) by 10 units. Calculate the new equilibrium levels of Y, i, E, and NX. Explain your findings. (4 marks)