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Please show your answer clearly, thanks. 3. Assume Foreign Economy is identical to Home Economy and has the same equations. Solve for equilibrium output in

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3. Assume Foreign Economy is identical to Home Economy and has the same equations. Solve for equilibrium output in each economy, Y and Y*. (8 points) Consider the following world that consists of two economies: Home Economy and Foreign Economy. Foreign variables are starred. Assume that both countries either use the same currency, or that the real exchange rate is fixed and normalized to one. C = 10+0.6(YT) I = T G = C T = T Q = 0.11% X = 0.1Y*

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