Assume that all prices are flexible and there is complete information. Assume that consumption depends on current and expected future real disposable income. Speculate on what would happen to the real...

Assume that all prices are flexible and there is complete information. Assume that consumption depends on current and expected future real disposable income. Speculate on what would happen to the real exchange rate, the nominal exchange rate, net exports, the domestic real interest rate, and domestic output if:a.Government spending increases temporarily. Assume that government budget remains balanced.b.Money supply rises.c.Foreign savings rises.