8.(a)Suppose that government spending in Germany is increased. Show and explain how that will impact global interest rates and capital flows. How, if at all, would that impact the U.S. as a large, open economy? Use graph(s) to illustrate.

(b)Now suppose that government spending in the U.S. is increased. Show and explain how that will impact global interest rates and capital flows in the U.S. and the rest of the world. Use graph(s) to illustrate.

(c)How are cases (a) and (b) similar, and different? Briefly explain.

*Explain your answers and show shifts of graphs clearly indicating changes in equilibria.