Question 2: Mundell Fleming - IS-LM Analyses Consider the Mundell Fleming - IS-LM Analyses with the exchange rate (e) on the vertical axis instead of interest rates (r) and the LM curve is perfectly inelastic. Assume you are in a small open economy. (a) With the aid of carefully labeled diagrams, use the Mundell Fleming - IS-LM Analyses to illustrate the impact of an expansionary fiscal policy on the exchange rate e, output Y. Explain your answer thoroughly. (10 marks) (b) With the aid of carefully labeled diagrams, use the Mundell Fleming - IS-LM Analyses to illustrate the impact of an expansionary monetary policy on the exchange rate e, output Y. Explain your answer thoroughly. (10 marks) (Total 20 marks)