Consider an economy described by the following data: Autonomous consumption = 5 4 trillion Autonomous Investment = $ 1.5 trillion %3D Government Expenditure = 5 3.0 trillion %3D Taxes = $ 3.0 trillion...

Extracted text: Consider an economy described by the following data: Autonomous consumption = 5 4 trillion Autonomous Investment = $ 1.5 trillion %3D Government Expenditure = 5 3.0 trillion %3D Taxes = $ 3.0 trillion Autonomous net exports =$ 1.0 trillion Financial frictions (f) = 0.5 mpc = 0.8 Responsiveness of investment to the real interest rate (d) = 0.4 Responsiveness of net exports to the real interest rate (x) = 0.2 Assume that the Fed controls the interest rate and sets the real interest rate at r = 4%. What is the equilibrium level of output? O $17.5 trillion O $12.5 trillion O $22.5 trillion $7.5 trillion O $24 trillion