Suppose that Ecuador is a small open economy running a trade deficit. a. In a plot that has the interest rate in the vertical axis and S and | in the horizontal axis, show where the world interest rate r* should be relative to the "closed-economy:r eouilibriurn interest rate\" rc b. Show the effect of an increase in technological progress in Ecuador that is expected to increase TFP. c. What is the effect of this shock on the trade balance? Show the trade balance in your plot