What will happen to the trade balance and the real exchange rate of a small open economy

Question:

What will happen to the trade balance and the real of a small open economy when government purchases increase, such as during a war? Does your answer depend on whether this is a local war or a world war?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...