Consider & closed Keynesian economy and assume the economy is initially in general equilibriun. ca) If the government raises tax to finance an increase in government Spending, you would desired national saving be affected ? Explain briefly and illustrate using a graph. c) Use the IS-LM - FE model to explain how economy will respond to the expansionary fiscal policy in the short run and in the long run and illustrate using a graph. Keynesian Small open economy and the domestic price Now Consider a level is fixed initially, how the есопоту (c) In a Hexible - exchange - rate system, explain trictly will respond the fiscal expansion in the short-run and in the long run and illustrate using graph. cd) In a fixed - exchange rate system, explain briefly how the economy will respond the fiscal expansion in the short-run and in the long run and illustrate using a graph. a