Question: PLEASE DRAW ALL 4 GRAPHS WITH CHANGES In the open-economy, suppose the domestic economy has a flexible exchange rate and the foreign country engages in

 PLEASE DRAW ALL 4 GRAPHS WITH CHANGES In the open-economy, suppose

PLEASE DRAW ALL 4 GRAPHS WITH CHANGES

In the open-economy, suppose the domestic economy has a flexible exchange rate and the foreign country engages in a fiscal expansion. Use the four figures diagram to show the short run effects of the foreign fiscal expansion on domestic output, interest rate and exchange rate. To answer this question, draw a diagram that includes the following four figures: (1) The goods market, (2) The money market, (3) The IS-LM curvess and (4) The interest parity condition. Clearly label the initial and new equilibrium points in each diagram. Provide brief explanations for the changes In the open-economy, suppose the domestic economy has a flexible exchange rate and the foreign country engages in a fiscal expansion. Use the four figures diagram to show the short run effects of the foreign fiscal expansion on domestic output, interest rate and exchange rate. To answer this question, draw a diagram that includes the following four figures: (1) The goods market, (2) The money market, (3) The IS-LM curvess and (4) The interest parity condition. Clearly label the initial and new equilibrium points in each diagram. Provide brief explanations for the changes

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