Moldavia is a developing country with a policy to always have a government deficit spending larger by 20% than taxes collected (i.e., G = 1.2T)

In addition, the following information is given for Moldavia:

Y = 6000

C = 400 + 0.8(Y-T)

I = 900 - 50r

NX = 1500- 900

a)In year 2019, net exports for the country were zero, and the world interest rate was 8%. What tax was collected by the government? What is national saving? What was the real exchange rate ?

b) In 2020, due to the Coronavirus pandemic, the government decided to raise taxes by 15% compared to 2019 (No change in Y, however occurred compared to 2019). At the same time, the world interest rate decreased to 5%. Calculate the new tax, new consumption, net exports, and the new real exchange rate. Did the Moldavian currency appreciate or depreciate compared to 2019? By what percent?