Problem 3. (10 points) Consider a small open economy described by the following system of equations: Y = AKIL!, A = 2, K = 100, L = 2500, Y =C+I+G+ NX, C = 0.5(Y - T) + 200, I = 200 - 20r, r=* = 1.5 G = 200, T = 100, NX = 300 - 240E. The letter r* denotes the world real interest rate in percentages. The letter e denotes the real exchange rate. (a) Compute the equilibrium real exchange rate, consumption, investment, and net exports (b) Analyze the effects of a reduction in taxes to T' = 50 on the economy. (c) Analyze the effects of a reduction in the world real interest rate to r* = 1 (d) Analyze the effects of an import restriction policy that shifts the net exports demand to NX = 380 - 2406