Question 2: Given the information in the question 1. assume our country's economy is small and that the foreign interest rate is 4.6 %, then answer the following questions: 1. Calculate the amounts of investment demand, private saving, national saving, net exports. and net foreign borrowing at the foreign interest rate 2. If the government budget deficit is cut by $250 billion, then calculate the new values of investment demand, private saving, national saving, and net exports. Is the economy now borrowing from the rest of the world or lending to the rest of the world! 3. If we have a large open economy and that mitially the domestic and foreign interest rates are both 3.2 percent. The government budget deficit is cut by $250 billion. As a result. the domestic and foreign interest rates both decline to 32 percent. Calculate the new amounts of investment demand. private saving national saving, net exports, and foreign borrowing (lending) at the new domestic and foreign interest rates