A small open economy with a fixed exchange rate e2 is initially at equilibrium A with LM1* and equilibrium output Y1. If there is an increase in government spending to the new equilibrium will be at _____, holding everything else constant.

Exhibit: IS*-LM* exchange rate, e | LM* B e es IS D IS Y2 Income, Output, Y A small open economy with a fixed exchange rate e2 is initially at equilibrium A with LM, * and equilibrium output Y1. If there is an increase in government spending to the new equilibrium will be at holding everything else constant.O O OD OC