Open economy

Consider a small open economy with the relationships: r = r*+.e a"? = 953) mp = Icyfr yd = h(S-p)+jg p = rodi} where r (H') is the domestic (foreign) nominal interest rate, 3 is the log of the nominal exchange rate, m is the log of the money supply, p is the log of the price level, y'l is the log of aggregate goods demand, 9 is the log of real government spending and f is the log of aggregate goods supply. (r*, m, g, )7) are exogenous and (:9, k. l, h. j, 21:) are positive parameters. (Further, _ denotes a long-run value, I denotes a rate of change over time and *3 denotes an expected value.) What will be the effect of a permanent increase in g on the long-run real and nominal exchange rates? (You do not need to consider the short-run effects.)