10. Some economists claim that budget deficits often spawn an evil twin, a trade deficit. a. Explain how a budget deficit might lead to an appreciating currently and a trade deficit. (Use our foreign exchange market diagram in this answer) b. Explain how the introduction of the foreign sector makes the fiscal policy tool of the budget deficit less effective in stimulating the open, as compared to the closed, economy. (Use our AD/AS model diagram in this answer). c. According to economists, what is (are) the true cost(s) of a budget deficit? Does the "opening up" of an economy change the type of costs a deficit produces? (Use our investment/savings model to answer this question)