http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/msqe2010.pdfCan somebody please refer to Q5 of PEB and help me out. I'm able to graphically derive equilibrium by showing that as G increases Y increases, r increases and exchange rate depreciates. I'm not able to do part c, can somebody please show a mathematical approach to the question above ?
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