Using diagrams analyze the impact on domestic Y and I of the following independent shocks in the Fleming-Mundell model.

(5) a. Foreign commercial banks report a large number of their borrowers cannot pay interest on their loans. Assume the exchange rate is floating and capital is perfectly mobile.

(5) b. Domestic consumption rises. There is a floating exchange rate and imperfect capital mobility.

(5) c. For the shock in (a) state the long-run effect on domestic investment I

.