Question 1 Suppose that Swemark is a small open economy characterized by the following equations: G = 125 (the level of government spending) T = 125 (the tax level) X = 200 - 15e (the export function) (M/P)d = Y - 25r (the money demand) P =4 (the price level) cr = 0.5 (the currency-deposit ratio) NX = 150-20e (the net export function) I = 100- 15r (the investment function) 1* =5 (the world market real interest rate) C = 200 + 0.8 (Y - T) (the consumption function) IM = 50 + 5e (the import function) Y = 1000 (the LM-curve)