An economy has inflationary pressure and a current account surplus. Please use the information and answer questions 15 and 16. 15. Please show the economy on the Swan diagram. 16. Could the economy achieve internal and external balance? How? 17. What does the downward-sloping IS curve suggest? 18. In the derivation of the LM schedule, it is assumed that money is demanded for two purposes. What are the two reasons? 19. How does a change in interest rate in the money market equilibrium affect the national income? 20. What does a point to the left of the BP schedule mean about the balance of payments equilibrium