Suppose the economics is aggregate demand is recession and also currently have big capital outflow

1. Goods-moneyexchange rate market: Explain rst what happens with the equilibrium in the goods-moneyexchauge rate market during: an ADdriven recession: then explainwhat happens with that equilibrium if both monetary and scal policies are used to counter the recession. In your explanation, make sure you show the relation between domestic interest rate. foreign interest rate, and the exchange rate. Make sure you use the necessary graphs in answering the