A) Turkey has a flexible exchange rate regime. Discuss in detail what the effects of an expansionary fiscal policy would be on output levels under this regime (10 points). How do you think the effects of such a policy would differ under a fixed exchange rate regime? (10 points)

B) Turkey has a flexible exchange rate regime. Assuming perfect capital mobility, do you think it is possible to control the interest rate and the exchange rate at the same time? Please discuss in detail and explain why or why not (10 points).