What Happens to the Output Gap,the Real Interest Rate,and Net

Essay

What happens to the output gap,the real interest rate,and net capital flows with the occurrence of each of the following events? Assume that exchange rates are flexible.
a. The Bank of Canada increases the money supply.
b. Canadian net exports decrease due to a decrease in incomes in the United States.
c. Consumers decide to save more and spend less.
d. Expected profits from newly-built factories in Canada decrease.