Aggregate income: Y (does it go up or down)? Exchange rate: e (up or down)? Trade balance: NX (up or down)? For both questions 1 and 2 please.

1. In the Mundell-Fleming model with fixed exchange rates, explain what happens to aggregate income, the exchange rate, and the trade balance when taxes are raised. 2. In the Mundell-Fleming model with fixed exchange rates, explain what happens to aggregate income, the exchange rate, and the trade balance when the money supply is reduced