(b) Now, let investment depend on both sales and the interest rate:I=b0+b1Y°b2i:Solve for equilibrium output. At a given interest rate, is the e/ect of changein autonomous spending bigger that what it was in(a)? Why? (Assumec1+b1<1).
(c) Next, let us introduce the °nancial market equilibrium condition with realmoney demand equal to real money supply.