. Suppose the following describes consumer and investment behavior, and international trade:

C = 125 + 0.8(Y - T), T = 0 for now. I = 50 - 100i i = 0.01 (given, for now; i = 0.01 means 1% interest rate.) X = 200 Z = .2Y

5.1.Explain intuitively why the interpretation of the 125 in the consumption function can be consumer confidence. Also explain intuitively the interpretation of the 0.8Y. 5.2.Explain intuitively the interpretation of the 50 in the investment function, as well as the 100i. 5.3.What is the numerical value of the multiplier? 5.4.Find the equilibrium value of Y.5.5.Find the new value of Y, given now I = 51 - 100i. Are your answers for the multiplier correct? How about your intuitive explanation? 5.6.Explain what would happen to the multiplier and the job creation process if C now equals 125 + 0.6Y. Would the multiplier be larger or smaller than before? Would more or fewer jobs be created? Why?