Principles of Macroeconomics Assignment 6 (Maximum Points: 4) Please answer the following problem sets. 1.Let’s assume a closed economy that have the following information about the economy for a particular year: Y=10000 C=6000 T=1500 G=1700 The economists also estimate that the investment function is: I=3300-100r, where r is the country’s real interest rate, expressed as a percentage. (Hint: This function represents the demand curve for the loanable fund market. Find the I first, then substitute to the function to get the real interest rate r.) Calculate private saving (Sprivate), public saving (Sprivate), national saving (S), investment (I), and the equilibrium real interest rate (r). 2.Suppose the government borrows $20 billion more next year than this year. a.Use a supply-and-demand diagram to analyze this policy. Does the interest rate rise or fall