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Really just need question three, anything helps! Thank you! Consider the following graphs describing the (open economy) market for loanable funds. 5 NLS I's O

Really just need question three, anything helps! Thank you!

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Consider the following graphs describing the (open economy) market for loanable funds. 5 NLS I's O NCO 1. (5 pts.) Using the domestic (no-trade) loanable funds figure on the left and the Net Capital outflows figure on the right, derive the loanable funds figure with trade and indicate the equilibrium real interest rate now that you have incorporated trade. Make sure to use the same scale for the r-axis - for the respective X-axes, three squares on the NCO graph equal one on the /, S figure.2. (4 pts.) Ok, now with your new equilibrium including NCO, derive the equilibrium level of the real exchange rate (indicate level with ) by using the Net Export function below: NX NX The x-axis scale is exactly the same as that of the NCO. 3. (5 pts.) Good, now let's suppose the foreign interest rates have risen - that means for any level of the domestic interest rate, the foreign rate has risen. Use your equilib rium from part a to show what happens to the domestic real interest rate, investment demanded, consumption, net exports and the real exchange rate

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