If I could also get the full working out, that'd be very useful

3. Mundell-Fleming Model: We consider a small country that takes foreign interest rate i' and output Y as given. Also, price level is fixed at I in both countries so that there is no distinction between real and nominal variables. Domestic Goods Market Consumption function C : -10+0.5(Y -T) Taxation: T = 20 Investment: I = 0.2Y Pomestic Money Market Government spending: G = 50 Net Exports: NX = 0.4Y' 0.2Y 55 - 500i Money demand: Md = 0.4Y - 550i The foreign interest rate is given as i interest parity (UIP) holds: Money supply: M = 20 = 0.1, and foreign output is at Y = 100. Assume that the uncovered Expected exchange rate is held fixed at = 1. Now the central bank decides to buy 4 units of bonds from the market, assuming that people hold deposit only and banks keep 20% as reserve. a) Calculate the new level of output as a result of the bond buying, assuming that exchange rate is flexible and capital flow is free. b) Calculate the new level of output as a result of the bond buying, assuming that exchange rate is fixed at I and capital flow is free. c) Calculate the new level of output as a result of the bond buying, assuming that exchange rate is fixed at I and capital flow is effectively restricted.