Uruguay is a small-open economy with free capital outflows and purely floating exchange rates.

This country engages in a serious international trade dispute with all its major trade partners.

As a result, all these countries retaliate and impose hefty tariffs on all Uruguayan exports. Global financial markets react badly to this tariff news, with foreign investors dumping Uruguayan bonds (as they perceived they are riskier now).

Using the Mundell-Fleming model to show in a graph how the mentioned news will affect output and the exchange rate in Uruguay. Use at most 30 words to explain the results.