Suppose the Mongolian government is concerned about the country's current account deficit, CA^MNG < 0, consider fiscal policies that would increase Mongolia's current account balance. Assume that Mongolia is a small open economy.

1. Would you advise to increase or decrease current government spending, G?
2. Would you advise to increase or decrease firms' capital income tax rates in the future?
3. Would you advise to increase or decrease labor income tax rates temporarily?
4. Illustrate the SI-diagram for Mongolia's funds market and indicate the effects of your above policy recommendations