Section B: Answer ANY TWO questions (30 pts) 1. The following questions below are concerned with a decrease in the world interest rate in the Mundell Fleming framework. (a) What happens to the IS curve when falls . Briefly explain. (3 pts) (b) With the aid of diagrams show, and say what happens to aggregate income, the exchange rate, and the trade balance when falls in the following two scenarios? (12 pts) i. A floating exchange rate ii. A fixed exchange rate