Hello, Please explain how to determine when to increase, decrease or remain unch

Question

Hello,

Please explain how to determine when to increase, decrease or remain unchange. Please clearly clarify drawing the graphs.

1. Ceteris paribus, a small, open economy decides to reduce tariffs. What will
happen to exports, net exports and the real exchange rate in the long run? Illustrate graphically.
(Be sure to label curves, axes and equilibria. Clearly show the direction of any shifts)

2. Ceteris paribus, a small, open economy increases government spending. Before
this change in policy NX=0. What will happen to S, I, r, net capital outflow, NX and the real
exchange rate in the long run? Illustrate graphically. (Be sure to label curves, axes and
equilibria. Clearly show the direction of any shifts. There should be at least 2 graphs.)

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Thanks

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