1)using the IS-LM-FE model of a closed economy,explain and draw a graph of the effect is a decline in the nominal money supply on the GDP the real interest rate and the price 2) Due to a change in the regulatory structure of a small open economy, the desired capital stock becomes higher for both private investment and government investment. Increased government investment spending is financed by borrowing, not by higher taxes. If both desired investment and government spending rise at the same time, will there be"twin deficits