Problem 2 (100 points) Assume that Korea is a closed economy, and that Korea has a fixed amount of capital, a fixed amount of labor, and fixed technology. The consumption functionis C=0.6x(Y -T), and investment functionis 7/ =8010xr. Y =120, G =T =20, where C denotes consumption, Y income, T tax revenue, / investment, the real interest rate, and G government spending. 1) Find out the investment level and the real interest rate in the long run. 2) Suppose Korean government increased its spending and reduced tax revenue. What is the impacts of the policy change on the investment level and the real interest rate in the long run? 3) Suppose the central bank increased the growth rate of money supply. What is the impacts of the policy change on the investment level and the real interest rate in the long run