President decides to increase the government expenditure to buy goods made in USA to help the economy during a recession. Analyze this policy by considering the increase in government expenditure as a shock in IS-LM-BoP.

1. Using the IS-LM-BoP Model only , who could lose from this policy?
2. If you work for that government, try to defend against accusations of increase in inflation which could negate effects to boost production. Try to link to ideas like (Heckscher-Ohlin, IS-LM-BoP, Monopolistic Competition, Ricardo, Inflation , National Accounting, Specific Factors, Government Intervention,Exchange Rates)