Consider two open economies, A and B, characterized by the equations on the right. C = Co + c, (Y - T) The parameters m, and x, are the propensities to import and export. Assume that the real exchange rate is fixed at a 1 = do + dy value of 1 and treat foreign income, Y*, as fixed. Also assume that taxes are fixed and that government purchases are exogenous (i.e., decided by the government). We explore the effectiveness of changes in G under alternative IM = my Y assumptions about the propensity to import. Given this information, which of the two economies do you think is larger? X =XY* OA A c1 + dy = 0.8 in both A and B OB. B my = 0.3 in A; m, = 0.5 in B O C. A and B are likely to be equally large. Suppose government purchases in each economy increase by one unit. (Assume the two economies do not trade with each other.) Output in A will Output in B will by Net exports in A will by Net exports in B will by