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I just need the answer and idea for the second question, thanks! Question 1

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I just need the answer and idea for the second question, thanks!

Question 1. Consider a world with two countries, the U.S. and Europe, and take the perspective of the U.S. economy. Assume a floating exchange rate. For each scenario below, use the open-economy IS-LM model (what the book calls the IS-LM-FX model) to predict the short-run response (increase, decrease, no change, or uncertain) of U.S. output Y , interest rate i$, the exchange rate E$/e, consumption C, investment I, and net exports N X. Assume that the U.S. Federal reserve does not adjust the money supply in response to any of these scenarios. Please explain your answers briefly.You may, but are not required to, include diagrams as part of your explanation.

1. An increase in European output Y ∗.
2. A decrease in the expected dollar-euro exchange rate Ee$e.
3. An increase in the European money supply M .
4. A decrease in U.S. government spending G.

Question 2. Consider the same setup and scenarios as in Question 1, but now assume that the U.S. Federal Reserve adjusts the money supply in response to these scenarios in order to maintain fixed U.S. output Y . Assume floating exchange rates.