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ïC ï½ ïc0 ï½ ï«$150 billion ïI ï½ ïï¡ ï90 ïc0 ï½ $150 ï½ ï$90 billion ï¡ ï« ï£ï¦ 90 ï« 6 ï´ 10 ïG ï½ 0 ïNX ï½ ïï¥ ï½ ï ï£ï¦ ï(6 ï´ 10) ïc0 ï½ $150 ï½ ï$60 billion ï¡ ï« ï£ï¦ 90 ï« 6 ï´ 10 ïï¦ ï10 ïc 0 ï½ $150 ï½ ï10% change ï¡ ï« ï£ï¦ 90 ï« 6 ï´ 10 The $150 billion increase in annual consumption spending, for this economy with these parameter values, in this full-employment model, shifts the economy's equilibrium by raising real interest rates by 1%, appreciating the value of the dollar (remember: the initial value of the real exchange rate ï¥ was set at 100) by 10%, reducing investment spending by $90 billion a year and reducing net exports by $60 billion a year.
