Question: pls help me with the question below, thanks! Question 6: [10 marks] In the openeconomy, suppose the domestic economy has a xed exchange rate and

pls help me with the question below, thanks!

Question 6: [10 marks] In the openeconomy, suppose the domestic economy has a xed exchange rate and the foreign country engages in a scal expansion. 1. Use the I SLM and interest-parity graphs to show the effects of foreign scal expansion on domestic output, interest rate and exchange rate. Assume that the change in 2'\" is smaller than the change in 73 caused by the initial shift of domestic IS curve. Breiy explain your results. 2. How will the components of GDP (0, I , G and N X ) change, and why

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