24 (20 points) Home is a small open economy that has a fixed exchange rate and perfect capital mobility. It is also producing at its long-run production capacity. Recently, a trade dispute between Home and Foreign has been resolved, and the government of Foreign removed its 27.5% tariff on Home products. Note: For both parts of the question, you must provide explanations why the variables of interest change or remain unchanged in order to receive full credit. a) Use the Mundell-Fleming model (Y-e graph) to illustrate graphically and explain in words the short-run effects of this change on Home's net exports, real exchange rate, nominal exchange rate, national saving, and real money balance. Only the first diagram will be graded. (10 points) b) Use the long-run classical model of a small open economy to show, in graphs and words, the long-run effects of this change on Home's net exports, real exchange rate, nominal exchange rate, national saving, and real money balance. (10 points)