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A New Republic economy has full-employment (or potential) output of 10,000 and government purchases are 2,000

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A New Republic economy has full-employment (or potential) output of 10,000 and government purchases are 2,000. Desired investment and consumption (investment and consumption demand) are as follows: Real interest rate (%) Desired consumption Desired investment National Saving 1 6,000 2,900 2 5,800 2,800 3 5,600 2,700 4 5,400 2,600 S 5,200 2,500 I a. Explain why consumption and investment falls as interest rate rises. b. Find the level of national saving for each value of the interest rate (you can fill in the blanks in the table above). c. If the goods market is in equilibrium, what are the values of the real interest rate, national saving, and investment?