PLEASE HELP ME TO ANSWER STEP BY STEP. DEATAILY AND CLEARLY. Consider the follow

Question

PLEASE HELP ME TO ANSWER STEP BY STEP. DEATAILY AND CLEARLY.

Consider the following macroeconomic model of an economy (a)Explain why net export is inversely related to interest rate. Find the expression for aggregate real output/income. Determine the value of equilibrium real output and interest rate given that money supply is 1000, government spending is 1200 and price level is one. Find C, I, and NX. Comment on the external balance situation for this economy (trade balance, trade surplus or trade deficit)

Explanation / Answer

Y= c+I+NG .Net export is inversly related to net intrest. this causes Net export increases when the dollar value decreases..

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