Canada is small open economy with perfect capital mobility, it is currently in its long-run equilibrium with balanced trade. In attempt to address the country's housing affordability crisis, the Canadian government increases its subsidy to residential housing developers. At the same time, the government rolls out the Home Buyer's Plan (HBP), an initiative that allows eligible Canadians to make withdrawals from their RRSP to buy or build a home for themselves. Use the long-run classical model of a small open economy to discuss the long-run effects of these policy changes on the levels of output, real interest rate and trade balance in Canada. What happens to the real US$/C$ exchange rate? Explain and support your answer with one loanable fund market diagram and one foreign exchange market diagram. Be sure to explain why the economic terms change or remain unchanged