Questions attached below

a. Consider an open economy in which the real exchange rate is fixed and equal to one. Consumption, investment, government spending, and taxes are given by C = 10 + 0.8(Y - T), 1= 10, G = 30, and T = 10. Imports and exports are given by IM=0.3Y and X=0.3Y* where Y* denotes foreign output. Solve for equilibrium output in the domestic economy, given Y*. What is the multiplier in this economy? Why would the multiplier be different in a closed economy? ii. Assume that the foreign economy is characterized by the same equations as the domestic economy (with asterisks reversed). Use the two sets of equations to solve for the equilibrium output of each country. What is the multiplier for each country now? Is it the same from the open economy multiplier in part (i)? Why? If not, why is it different? iii. Instead of G=30, the equilibrium output in the domestic economy now is based on a given Government Spending of G=10. Suppose each government has a target level of output of 125 and that each government increases government spending by the same amount. What is the common increase in G and G* necessary to achieve the target output in both countries? Solve for net exports and the budget deficit in each country