ISI 2010 Q5

Posted by Econenthusiast on
URL: http://discussion-forum.276.s1.nabble.com/ISI-2010-Q5-tp7608761.html

http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/msqe2010.pdf

Can 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 ?